Petitioner Wins GST Registration Case, Granted Three-Week Window to Respond and Prove Business Validity Under Rule 21 HC ruled in favor of petitioner, setting aside retrospective GST registration cancellation. Court directed proper officer to provide three weeks for ...
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Petitioner Wins GST Registration Case, Granted Three-Week Window to Respond and Prove Business Validity Under Rule 21
HC ruled in favor of petitioner, setting aside retrospective GST registration cancellation. Court directed proper officer to provide three weeks for petitioner to respond to Show Cause Notice and establish business existence. Officer must conduct personal hearing and pass appropriate order within two months, ensuring due process and fair opportunity to present evidence.
Issues: Impugning Show Cause Notice and Order of GST Registration Cancellation with Retrospective Effect
Analysis: The petitioner challenged a Show Cause Notice (SCN) and an order cancelling their Goods and Services Tax (GST) registration with retrospective effect. The petitioner had initially applied for cancellation of GST registration due to business closure. The proper officer issued a notice requesting documents to assess the petitioner's liability under the CGST Act/DGST Act. The petitioner failed to respond to this notice, leading to rejection of the cancellation application. Subsequently, a new SCN was issued citing the reason for cancellation as "Non-existent." A letter indicated physical verification found the firm non-existent, directing cancellation from the registration date. However, the letter lacked specifics on verification date or conclusive evidence of non-existence. The impugned order cancelling registration did not provide reasons apart from referring to the SCN. The petitioner contested the retrospective cancellation, claiming inadequate opportunity to respond.
The court found in favor of the petitioner, setting aside the order of retrospective cancellation. The petitioner was granted three weeks to respond to the SCN, providing relevant documents to establish existence at the declared business location until closure in November 2022. The proper officer was directed to consider the response and pass an appropriate order after a personal hearing, preferably within two months. The petition was disposed of accordingly.
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