Order of cancellation of GST registration is liable to be quashed on the ground that no opportunity was given to the petitioner.
Section 29 of the CGST Act — Cancellation of Registration –Principles of Natural Justice-- The petitioner sought for quashing of order dated 13.03.2020 of cancellation of registration of the petitioner, on the ground that no opportunity was given to the petitioner. The registration has been cancelled on the ground of failure to file six monthly returns from August, 2019 to January, 2020 within the prescribed time limit. The counsel for the petitioner submitted in the show cause notice for cancellation of registration issued in form GST REG-17 there is no appointed date or time indicated for the petitioner to furnish a reply. Further order of cancellation of registration dated 13.03.2020 also records no reasons for cancellation of the registration. The counsel for the petitioner relied upon the decision of the Gujarat High Court in the case of "Mahadev Trading Company Vs. Union of India" passed in R/Special Civil Application No. 11262 of 2020 dated 28.09.2020. The respondents in reply attributed technical error in the show- cause notice and the impugned order. The court observed that the ingredients of a proper show-cause notice as per the prescribed form GST REG-17 are completely absent. The petitioner could not furnish his reply as no date or time was indicated therein. Therefore, the cancellation of registration resulting from such an incomplete show-cause notice also cannot be sustained being violative of principles of natural justice.
Held that:- The Hon’ble High Court quashed the impugned order of cancellation of registration dated 13.03.2020.
Order of cancellation of GST registration is liable to be quashed on the ground that no opportunity was given to the petitioner.
Section 29 of the CGST Act — Cancellation of Registration –Principles of Natural Justice-- The petitioner sought for quashing of order dated 13.03.2020 of cancellation of registration of the petitioner, on the ground that no opportunity was given to the petitioner. The registration has been cancelled on the ground of failure to file six monthly returns from August, 2019 to January, 2020 within the prescribed time limit. The counsel for the petitioner submitted in the show cause notice for cancellation of registration issued in form GST REG-17 there is no appointed date or time indicated for the petitioner to furnish a reply. Further order of cancellation of registration dated 13.03.2020 also records no reasons for cancellation of the registration. The counsel for the petitioner relied upon the decision of the Gujarat High Court in the case of "Mahadev Trading Company Vs. Union of India" passed in R/Special Civil Application No. 11262 of 2020 dated 28.09.2020. The respondents in reply attributed technical error in the show- cause notice and the impugned order. The court observed that the ingredients of a proper show-cause notice as per the prescribed form GST REG-17 are completely absent. The petitioner could not furnish his reply as no date or time was indicated therein. Therefore, the cancellation of registration resulting from such an incomplete show-cause notice also cannot be sustained being violative of principles of natural justice.
Held that:- The Hon’ble High Court quashed the impugned order of cancellation of registration dated 13.03.2020.