AI Drafter 
TaxTMI 
TaxTMI 
2025 (4) TMI 557
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....petitioner that he is a Works Contractor and one of the partner in a partnership firm by name, M/s Sri Guna Ram Nirmolia and Co, having its registered office at Duliajan, District - Dibrugarh, Assam. The petitioner got himself registered as partnership firm under the Central Goods and Services Tax [CGST] Act, 2017 ['the CGST Act', for short]/State Goods and Services Tax [SGST] Act, 2017 ['the SGST Act', for short]. It is stated that when the petitioner applied for registration, the petitioner was issued a Registration Certificate in Form GST REG-06 with Registration no. 18AAOFG4491K1ZR w.e.f. 18.05.2018. 3. The petitioner was issued the Show Cause Notice on 05.01.2021 by the Proper Officer asking him to show cause as to why the Registration issued to him under the CGST Act should not be cancelled due to failure on its part to furnish returns for a continuous period of six months. The petitioner was thereby, asked to furnish a Reply within seven working days from the date of service of the Show Cause Notice. The petitioner was also directed to appear before the Proper Officer at 10-28 a.m. on 12.01.2021. It was further mentioned that if the petitioner would fail to furnish a Repl....
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....ot filing the returns for a continuous period of six months and more was clearly attributable to the petitioner and none else. He has further submitted that the petitioner did not either submit an application for revocation in time nor presented an appeal under Section 107, CGST Act in time and such facts go to demonstrate that the petitioner himself was indolent and not vigilant. 8. I have considered the submissions of the learned counsel for the parties and have also gone through the materials brought on record, apart from the relevant provisions of the CGST Act, 2017 and the CGST Rules, 2017 ['the CGST Rules', for short] on which the learned counsel for the parties have relied on. 9. Section 39 [1] of the CGST Act inter-alia requires a registered person to furnish a return for every calendar month or part thereof, electronically, of inward and outward supplies of goods or services or both, input tax credit availed, tax payable, tax paid and such other particulars, in such form and manner, and within such time, as may be prescribed. Rule 61 [1] of the CGST Rules has prescribed the Form and manner of furnishing of return electronically through the common portal either direct....
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.... 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 [c] of sub-section [2] of section 29, furnishes all the pending returns and makes full payment of the tax dues along with applicable interest and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20. [5] The provisions of sub-rule [3] shall, mutatis mutandis, apply to the legal heirs of a deceased proprietor, as if the application had been submitted by the proprietor himself. 12. Sub-rule [2] of Rule 21A of the CGST Rules has empowered the Proper Officer also to suspend the registration of a person with effect from a date to be determined by him, pending the completion of the proceedings for completion for cancellation for registration under Rule 22, where the Proper Officer has reasons to believe that the registration of the person is liable to be cancelled under Section 29 or under Rule 21. The Show Cause Notice dated 05.01.2021 was mentioned about Rule 21A. 13. Sub-rule [1] of Rule 22 of the CGST Rules has inter-alia prescribed that where the Proper Officer ha....
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....rte on the basis of available records and on merits. 17. When the contents of the Show Cause Notice dated 05.01.2021 and the contents of the impugned Order dated 10.02.2021 are read together, it is found that by the Order dated 10.02.2021, the Proper Officer while cancelling the GST Registration of the petitioner w.e.f. 10.02.2021, has not assigned any reason. The Proper Officer in the Order dated 10.02.2021 has recorded that; 'This has reference to your Reply dated 17.01.2021 in response to show cause dated 05.01.2021. Whereas the undersigned has examined your reply and submissions made at the time of hearing, and is of the opinion that your registration is liable to be cancelled for following reason[s]. 1. return not filed'. 18. When the contents of the Show Cause Notice dated 05.01.2021 and the contents of the impugned Order dated 10.02.2021 are read together, it is found that the Proper Officer has made mention of a Reply dated 17.01.2021 submitted from the petitioner's end in response to the Show Cause Notice dated 05.01.2021. The Proper Officer has gone on to observe that he examined the Reply received from the petitioner and considered the submissions made by ....
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....sion made during personal hearing and based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason[s]: or • Whereas reply to the show cause notice has been submitted vide <ARN Number> dated......... But, you or your authorised representative did not attend the personal hearing on scheduled or extended date; and whereas, the undersigned on examination of your reply to show cause notice and based on record available with this office is of the opinion that your registration is liable to be cancelled for following reason[s]: or • Whereas reply to the show cause notice has been submitted vide <ARN Number> dated...... and you/your authorised representative attended the personal hearing, made a written/oral submission during personal hearing; and whereas, the undersigned has examined your reply to show cause notice as well as submissions made at the time of personal hearing and is of the opinion that your registration is liable to be cancelled for following reason[s]: i. ii. The effective date of cancellation of your registration is <<DD/MM/YYYY>>. ....
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....the impugned Order is not in conformity with the procedure prescribed in FORM GST REG-19. A speaking order is one which expressly states the reasons for the decision. In other words, a speaking order speaks for itself by assigning the reasons behind the conclusion. If an order is passed without giving a reason by the concerned authority, then the order is a non-speaking one. Non-speaking order is one which does not provide a clear reason for its decision. The fact that the petitioner-assessee did not submit any Reply to the Show Cause Notice dated 05.01.2021 or did not appear before the Proper Officer, when she was called upon to do so, does not absolve the Proper Officer from the obligation of passing a speaking order as any order which brings adverse consequence to a person cannot be a mere paper formality. 24. An adjudicating authority exercising statutory power of cancelling registration under the CGST Act must record reasons for its decision, if such obligation is not expressly or impliedly dispensed with. It is implicit in the principles of natural justice or fair play that an adjudicating authority should record reasons as it is part of fair procedure, more particularly, ....