2025 (10) TMI 245 - HC - GST

Petition allowed; GST registration cancellation set aside-file all pending GST returns for period of cancellation to seek revocation

HC allowed the petition, set aside the orders cancelling the firm's registration and dismissing the appeal, and directed the petitioner to submit all ... Rejection of appeal preferred by the petitioner against the order cancelling registration of petitioner's firm - sufficient opportunity of hearing was not given to the petitioner - violation of principles of natural justice - HELD THAT:- From perusal of the documents attached with the petition, it appears that a show cause notice for cancellation of registration was issued by the department on 24/05/2024 (Annexure P-5). Thereafter, vide order dated 05/06/2024 (Annexure P/2) registration of petitioner's firm was cancelled. When appeal was preferred, then appellate authority dismissed the appeal vide order dated 14/05/2025 (Annexure P/1) on the ground of delay. Therefore, it is not a case where opportunity of hearing was not provided to the petitioner. It was very much provided and thereafter order was passed. However, question is that the petitioner is facing adversity and wants to go again into the main stream of tax regime, therefore, it would be in the interest of department/revenue also to take the petitioner into regular main stream as part of formal economy, so that he may conduct business while giving regular tax to the authority. The impugned orders are hereby set aside and the petitioner is directed to submit all the pending GST returns specially for the period when the registration was cancelled and if such pending returns are submitted before the authority, then authority shall consider the case for revocation of registration. Petition allowed. Petitioner, a company registered under the Companies Act, 2013, had its GST registration cancelled vide order dated 05/06/2024 for non-furnishing of returns for December 2023-March 2024 after a show cause notice dated 24/05/2024; the departmental appeal was dismissed on 14/05/2025 on the ground of delay. Reliance was placed on Sections 25, 29 and 30 of the Central Goods and Services Tax Act, 2017 and Rules 21(a) & (h), 22 and 23 of the CGST Rules, 2017. The Court found that an opportunity of hearing had been afforded. The Court 'set aside' the impugned orders dated 05/06/2024 and 14/05/2025 and directed the petitioner to submit all pending GST returns, particularly for the period when registration was cancelled, whereupon the authority shall consider the case for revocation of registration. As petitioner committed default, a cost of Rs.50,000 is imposed to be paid to the department along with the pending returns. Order expressly passed on the 'peculiar facts and circumstances of the case.'