2025 (3) TMI 1311 - HC - GST

GST Registration Suspension Resolved: Technical Access Barriers Overcome, Petitioner Granted 30-Day Portal Window to Respond

The HC addressed a GST registration suspension dispute, finding technical access issues prevented the petitioner from responding to a Show Cause Notice. ... Suspension of GST registration of the Petitioner - SCN alleged that the Petitioner does not conduct its business from the declared place of business - HELD THAT:- The Petitioner’s difficulty is that the Petitioner is unable to access the GST portal so as to enable the Petitioner to file a reply. Let the GST portal access be given to the Petitioner for at least a period of 30 days to enable the Petitioner to file a reply to the impugned Show Cause Notice. ISSUES PRESENTED and CONSIDEREDThe primary issue considered by the Court was whether the Show Cause Notice (SCN) issued to the Petitioner for the suspension of their Goods and Services Tax (GST) registration was valid and whether the Petitioner was entitled to relief in the form of a writ to set aside the SCN and revoke the suspension of their GST registration.ISSUE-WISE DETAILED ANALYSIS1. Validity of the Show Cause Notice and Suspension of GST RegistrationRelevant legal framework and precedents: The SCN was issued under Rule 21A of the Central Goods and Services Tax Rules, 2017. This rule allows for the suspension of GST registration if it is found that the registered person does not conduct any business from the declared place of business.Court's interpretation and reasoning: The Court noted that the SCN alleged that the Petitioner was not conducting business from the declared place of business. The Petitioner was required to respond to the SCN within seven working days, failing which the registration would remain suspended. The Court observed that the Petitioner did not file a reply within the stipulated time but instead requested a revisit of the business premises by the GST Inspector.Key evidence and findings: The Petitioner claimed that they were unable to access the GST portal to file a reply to the SCN. The Respondent confirmed that the registration was only suspended and not cancelled due to the non-filing of the reply.Application of law to facts: The Court considered the Petitioner's inability to access the GST portal as a significant factor affecting their ability to respond to the SCN. The Court found it appropriate to allow the Petitioner access to the portal to file a reply.Treatment of competing arguments: The Respondent argued that the suspension was due to the Petitioner's failure to reply. The Petitioner argued that the inability to access the GST portal prevented them from complying with the SCN requirements. The Court balanced these arguments by granting temporary access to the portal to enable the Petitioner to file a reply.Conclusions: The Court concluded that the Petitioner should be granted access to the GST portal for 30 days to file a reply to the SCN. Following the submission of the reply, the Respondent was directed to make a decision regarding the suspension within 30 days.SIGNIFICANT HOLDINGSPreserve verbatim quotes of crucial legal reasoning: 'Under these circumstances, let the GST portal access be given to the Petitioner for at least a period of 30 days to enable the Petitioner to file a reply to the impugned Show Cause Notice.'Core principles established: The judgment underscores the importance of procedural fairness in administrative actions, particularly the necessity for affected parties to have a reasonable opportunity to respond to allegations before a decision is made.Final determinations on each issue: The Court disposed of the petition by granting the Petitioner access to the GST portal for 30 days to file a reply to the SCN. The Respondent was instructed to decide on the suspension of the GST registration within 30 days after the reply is filed. All pending applications were also disposed of.