TaxTMI 
TaxTMI 
2024 (3) TMI 744
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....ntral Goods and Service Tax Act, 2017. Petitioner applied for the amendment in registration details through Form REG-14 i.e., for addition of additional place of business in his GST certificate, pursuant to which a Show Cause Notice, dated 04.01.2023, was issued seeking further details. However, as per the petitioner no order has been passed on the application seeking addition of a place of business. 3. As per the Petitioner earlier a Show Cause Notice dated 20.05.2023 was issued calling upon the Petitioner to show cause as to why the registration be cancelled, on the ground of "1. Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts". Such notice was challenged before the High Court in W.P.(C) 7477/2023 and this Court vide order dated 26.05.2023 set aside the said show cause notice on the ground that it did not contain any specific allegation that could be addresses with a meaningful response. 4. As per the Petitioner, despite the order dated 26.05.2023, the GST-Registration of the Petitioner's firm remained suspended for a month, and, the proceeding of cancellation of registration were then dropped and suspension was revoked only....
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....on of proceedings for cancellation of registration under rule 22. (2) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29 or under rule 21, he may, suspend the registration of such person with effect from a date to be determined by him, pending the completion of the proceedings for cancellation of registration under rule 22. (2A) Where, a comparison of the returns furnished by a registered person under section 39 with (a) the details of outward supplies furnished in FORM GSTR-1; or (b) the details of inward supplies derived based on the details of outward supplies furnished by his suppliers in their FORM GSTR-1, or such other analysis, as may be carried out on the recommendations of the Council, show that there are significant differences or anomalies indicating contravention of the provisions of the Act or the rules made thereunder, leading to cancellation of registration of the said person, his registration shall be suspended and the said person shall be intimated in FORM GST REG-31, electronically, on the common portal, or by sending a communication to his e-mail address provided at the time of re....
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....ce of such notice, as to why his registration shall not be cancelled. (2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM REG-18 within the period specified in the said sub-rule. (3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1), cancel the registration, with effect from a date to be determined by him and notify the taxable person, directing him to pay arrears of any tax, interest or penalty including the amount liable to be paid under sub-section (5) of section 29. (4) Where the reply furnished under sub-rule (2) is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG -20: Provided that where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b) or clause ....
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..... Vasantha, 2022 SCC OnLine SC 2096, wherein the Supreme Court has held as under: "27. A three-Judge Bench of this Court in a judgment reported as Salem Advocate Bar Association, T.N. v. Union of India while interpreting the word "shall" in Order VIII Rule 1 of the Civil Procedure Code, 1908 held as under: "20. The use of the word "shall" in Order 8 Rule 1 by itself is not conclusive to determine whether the provision is mandatory or directory. We have to ascertain the object which is required to be served by this provision and its design and context in which it is enacted. The use of the word "shall" is ordinarily indicative of mandatory nature of the provision but having regard to the context in which it is used or having regard to the intention of the legislation, the same can be construed as directory. The rule in question has to advance the cause of justice and not to defeat it. The rules of procedure are made to advance the cause of justice and not to defeat it. Construction of the rule or procedure which promotes justice and prevents miscarriage has to be preferred. The rules of procedure are the handmaid of justice and not its mistress. In the present context, the stric....
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....y the necessity of complying with the provisions in question is avoided, the circumstance, namely, that the statute provides for a contingency of the non-compliance with the provisions, the fact that the non-compliance with the provisions is or is not visited by some penalty, the serious or trivial consequences that flow therefrom, and, above all, whether the object of the legislation will be defeated or furthered." 18. In Raza Buland Sugar Co. Ltd. v. Municipal Board, Rampur [AIR 1965 SC 895] and State of Mysore v. V.K. Kangan [(1976) 2 SCC 895 : AIR 1975 SC 2190], this Court held that as to whether a provision is mandatory or directory, would, in the ultimate analysis, depend upon the intent of the lawmaker and that has to be gathered not only from the phraseology of the provision but also by considering its nature, its design and the consequence which would follow from construing it in one way or the other. ***** ***** ***** 23. In State of Haryana v. Raghubir Dayal [(1995) 1 SCC 133] this Court has observed as under: "5. The use of the word 'shall' is ordinarily mandatory but it is sometimes not so interpreted if the scope of the enactment, on consequences to flow from ....
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....eedings invalid or not. Whether the provision is mandatory or directory, depends upon the intent of the legislature and not upon the language for which the intent is clothed. The issue is to be examined having regard to the context, subject-matter and object of the statutory provisions in question. The Court may find out as to what would be the consequence which would flow from construing it in one way or the other and as to whether the statute provides for a contingency of the non-compliance with the provisions and as to whether the non-compliance is visited by small penalty or serious consequence would flow therefrom and as to whether a particular interpretation would defeat or frustrate the legislation and if the provision is mandatory, the act done in breach thereof will be invalid. 21. To determine the intention of the legislature, we may refer to the provisions of Sections 73 and 74 of the Act which inter alia deal with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised. 22. Section 73 of the Act reads as under: "73. Determination of tax not paid or short paid or erroneously refunded or input tax credit wron....
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....how cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty equivalent to the tax specified in the notice. (2) The proper officer shall issue the notice under sub-section (1) at least six months prior to the time limit specified in sub-section (10) for issuance of order. ***** ***** ***** (9) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order. (10) The proper officer shall issue the order under sub-section (9) within a period of five years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous refund. ***** ***** ***** 24. Section 73 and 74 of the Act stipulate timelines for issuance of the order as three year or five year respectively. 25. Section 75(10) of the Act provides that "The adjudication proceedings shall be deemed to be concluded, if the order is not issued within three ....