GST Registration Cancellation Order Overturned, Case Remanded for Fresh Evaluation with Preservation of All Party Rights

HC set aside GST registration cancellation order and remitted the matter for re-adjudication within four weeks. The court did not comment on case merits, reserving all rights and contentions for parties. Petitioner's deposit of Rs. 4,48,100/- and failure to respond to Show Cause Notice were key considerations in the decision.

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Issues:
1. Impugning order cancelling GST registration.
2. Failure to respond to Show Cause Notice.
3. Non-deposit of cash towards tax for output supplies.
4. Rejection of application for revocation.
5. Re-adjudication of Show Cause Notice.
6. Court not commenting on merits.

Analysis:

Issue 1: Impugning order cancelling GST registration
The petitioner challenged the order dated 10.01.2024 cancelling their GST registration. The petitioner contended that they were aware of a Show Cause Notice dated 16.12.2023 proposing the cancellation but could not respond before the registration was cancelled. The respondent, however, stated that a deposit had been made by the petitioner as per their instructions.

Issue 2: Failure to respond to Show Cause Notice
The petitioner acknowledged receiving a detailed Show Cause Notice dated 15.12.2023, mentioning reasons for cancellation, including non-deposit of cash towards tax for output supplies exceeding Rs 15 Lacs. Subsequently, the petitioner made a deposit of Rs. 4,48,100/- on 13.05.2024. The application for revocation based on this deposit was rejected.

Issue 3: Non-deposit of cash towards tax for output supplies
The respondent confirmed that the deposit claimed by the petitioner had been made. They indicated that the department would reconsider the cancellation of GST registration in light of this deposit.

Issue 4: Rejection of application for revocation
Despite the deposit made by the petitioner, the application for revocation was rejected. This led to the petitioner seeking relief from the court against the cancellation of their GST registration.

Issue 5: Re-adjudication of Show Cause Notice
The High Court set aside the order of cancellation dated 10.01.2024 and remitted the matter to the proper office for re-adjudication of the Show Cause Notice dated 16.12.2023 within four weeks. The court clarified that it did not consider or comment on the merits of the parties' contentions, reserving all rights and contentions for the parties.

Issue 6: Court not commenting on merits
The Court made it clear that it neither considered nor commented on the merits of the case, ensuring that all rights and contentions of the parties were reserved. The petition was disposed of accordingly, with the matter of cancellation of GST registration being remitted for re-adjudication.

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