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2022 (12) TMI 553 - HC - GSTCancellation of GST registration of the petitioner - no SCN issued for cancellation of registration - principles of natural justice - HELD THAT:- It is evident that there is no reason at all to issue show cause notice for cancellation of GST registrations of the petitioners. Respondent simply mentioned that in case the petitioners have obtained GST registration by means of fraud, wilful misstatement or suppression of facts, then their GST registrations were liable to be cancelled. No particulars of any such fraud, wilful misstatement or suppression of facts have been mentioned. In fact the notice issuing authority himself was not certain whether the GST registrations were obtained by the above means. Therefore, he says that ‘in case registrations were obtained by such means’. Issuance of show cause notice for cancellation of GST registration has got serious consequences and could not have been issued in such a cavalier manner. In the present case, the petitioners had submitted show cause reply on 12.10.2022 and on the very same day i.e., on 12.10.2022, the impugned orders were passed cancelling GST registrations of the petitioners. The reason given for such cancellation is that as per directions of the Head Office dated 28.09.2022, the registrations were suspended and cancelled. What was the direction of the Head Office was not disclosed. Suspending registrations on the basis of direction of the Head Office cannot be a reason for cancellation of GST registration. From a conjoint reading of the show cause notices and orders for cancellation of the registrations, we are of the view that conduct of the first respondent does not at all inspire the confidence of the Court. There appears to be something amiss in the entire affair. The show cause notices were issued and the impugned orders were passed in a most mechanical manner exhibiting complete non-application of mind - the impugned orders for cancellation of GST registration dated 29.09.2022 of the petitioners is set aside. Petition allowed.
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