2023 (10) TMI 1511 - HC - GST

Cancellation of registration of petitoner - order does not show any reason or even raised an allegation against the petitioner of not having filed returns for a continuous period of six months - HELD THAT - The order has to be interfered with. The order does not clearly indicate the failure to file the returns nor does it indicate the explanation stated in the reply said to have been filed dated 15.02.2023. Annexure-1 order set aside especially on the undertaking made by the petitioner before Court that the entire tax interest and penalty would be paid. If the petitioner pays the amount of tax interest and penalty and also files the returns for the period for which the default occurred within a period of one month from today the registration shall be restored and if not the registration shall stand cancelled. Petition allowed.

Summary

The High Court of Patna, presided over by the Honourable Chief Justice and Honourable Mr. Justice Rajiv Roy, addressed a petition concerning the cancellation of a registration. The petitioner challenged the notice and subsequent order for cancellation, which was attached as Annexure-1. The appeal against this order was dismissed due to a delay in filing. However, the court noted that the order lacked any stated reasons or allegations against the petitioner for failing to file returns over a continuous six-month period. The court decided to interfere with the order, highlighting the absence of clear indications regarding the petitioner's failure to file returns and the lack of acknowledgment of the petitioner's explanation submitted on February 15, 2023. Consequently, the court set aside the order in Annexure-1, contingent upon the petitioner's commitment to pay the full tax, interest, and penalty, and to file the missing returns within one month. Compliance with these conditions would result in the restoration of the registration; failure to comply would lead to its cancellation. The writ petition was thus allowed.