GST registration cancellation orders set aside due to procedural lapses and improper consideration of petitioner's reply The HC set aside orders cancelling GST registration and dismissing appeal on limitation grounds. The petitioner's registration was cancelled for ...
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GST registration cancellation orders set aside due to procedural lapses and improper consideration of petitioner's reply
The HC set aside orders cancelling GST registration and dismissing appeal on limitation grounds. The petitioner's registration was cancelled for non-filing GSTR 3B returns for six consecutive months. The Court found the authorities failed to properly consider the petitioner's reply and noted discrepancies in the adjudication process, including ambiguity regarding deposit amounts mentioned as "zero." The Court allowed the petition, restored the petitioner's right to challenge future orders, and granted liberty to respondents to issue fresh show cause notice if necessary while ensuring legal compliance.
Issues: Challenge against cancellation of GST registration and dismissal of appeal on the ground of limitation.
Analysis: The petitioner challenged the cancellation of GST registration and the dismissal of the appeal based on limitation. The petitioner received a Show Cause Notice for non-filing of GSTR 3B returns, leading to the cancellation of registration. The petitioner argued that the appeal was dismissed without considering the merits of the case, solely on the grounds of limitation. The petitioner sought the setting aside of the dismissal order and restoration of GST registration for future business activities.
The Court noted that the cancellation was based on the non-filing of GST returns for six consecutive months. However, it observed that the show cause notice and the impugned order were issued without proper consideration of the petitioner's reply, indicating a lack of application of mind on the part of the authorities. The Court found discrepancies in the process followed by the Adjudicating Authority and highlighted the need for a more thorough review of the case before canceling the registration.
Regarding the order passed by the Adjudicating Authority, it was found that although the petitioner was asked to pay a certain amount, the actual amount was mentioned as "zero." This ambiguity raised questions about the necessity of depositing any sum, as the respondents failed to specify the payable amount. Consequently, the Court set aside the orders dated 09.06.2022 and 29.05.2024, thereby allowing the petition.
The Court granted liberty to the respondents to issue a fresh Show Cause Notice to the petitioner if deemed necessary, ensuring compliance with the law. It was clarified that the petitioner could challenge any future orders through the appropriate legal channels. Additionally, any pending interlocutory applications were disposed of as part of the judgment.
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