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TMI Blog2024 (10) TMI 1389X X X X Extracts X X X X X X X X Extracts X X X X ..... aken on rent from the landlord. The same was approved by the proper officer after due verification without issuance of any memo for deficiency in REG-03. The petitioner had at the time of amendment in the GST Registration placed operation and management registration agreement as proof of address and possession of additional place of business. Since then the petitioner has been running operation from both the places and is also complying with the GST provisions. In December 2023, the respondents visited at the additional place of business for physical verification on the basis of a complaint filed by the land owner, who wanted the petitioner to vacate the premises. It was alleged that the petitioner is operating business from his land without his consent, hence, committed violation of the GST laws. After the inspection, the complaint was stated to have been dropped. In May 2024, the respondents again visited the additional place of business on the basis of complaint filed by the land owner and demanded no objection from the land owner for operating the business from the said place. 3. A letter was issued by the department on 20.05.2024 seeking initiation of cancellation proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urther, he submits that Section 29 of the GST Act read with Rule 21-A of the GST Rules are the only provisions which lay down the process of cancellation and the grounds on which the proceedings can be invoked by the department for cancellation of registration. Suspension can also be done only for the same reasons. No other ground beyond the statutory mandate could be taken into consideration for cancellation of GST registration and the action of the respondents in cancelling the registration and suspending the registration stating reasons as others is clearly unjustified and illegal. It has been stated that even as on today, the petitioner is running the business from the additional place of business. The petitioner has never evaded any tax liability and is fully complying the GST laws. 7. Learned counsel for the petitioner has relied on judgments in M.B. Trading vs State of Tripura (2023) 10 Centax 232 (Tripura); Shyam Sundar Sita Ram Traders v State of U.P. (2023) 11 Centax 70 (All) and Om Trading vs State of Gujarat (2023) 12 Centax 109 (Guj.). 8. The respondent has filed the written statement. Learned counsel for the respondent submitted that the additional place of business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er which the action complained of has been taken itself contains a mechanism for redressal of grievance." 15. In the present case, we do not find any statutory remedy available with the petitioner to assail the suspension order of GST Registration at the stage of issuance of show cause notice and we, therefore, reject the contention of learned counsel for the respondent not to entertain the writ petition on the ground of availability of alternative remedy. 16. On merits, we find that the petitioner was granted GST registration on 11.07.2017 and amended registration order was also passed on 10.02.2019. Thus, from 2019 onwards the petitioner has been operating his business from the principal place of business as well as from additional place of business. It is now only when some dispute has arisen between the landlord and the petitioner in December 2023 after about 4 years, the respondent has now issued the impugned letter on 20.05.2024 seeking initiation of cancellation proceedings and order has been passed on 10.07.2024 whereby the suspension of GST registration has been issued on the ground mentioning others. 17. For the purpose of adjudication of this case, it would be apposi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. (4) The cancellation of registration under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, as the case may be, shall be deemed to be a cancellation of registration under this Act. (5) Every registered person whose registration is cancelled shall pay an amount, by way of debit in the electronic credit ledger or electronic cash ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock or capital goods or plant and machinery on the day immediately preceding the date of such cancellation or the output tax payable on such goods, whichever is higher, calculated in such manner as may be prescribed: PROVIDED that in case of capital goods or plant and machinery, the taxable person shall pay an amount equal to the input tax credit taken on the said capital goods or plant and machinery, reduced by such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hange of the Permanent Account Number of a registered person, the said person shall apply for fresh registration in FORM GST REG-01: PROVIDED FURTHER that any change in the mobile number or e-mail address of the authorised signatory submitted under this rule, as amended from time to time, shall be carried out only after online verification through the common portal in the manner provided under [sub-rule (2) of rule 8]. [(1A) Notwithstanding anything contained in sub-rule (1), any particular of the application for registration shall not stand amended with effect from a date earlier than the date of submission of the application in FORM GST REG-14 on the common portal except with the order of the Commissioner for reasons to be recorded in writing and subject to such conditions as the Commissioner may, in the said order, specify.] (2) Where the proper officer is of the opinion that the amendment sought under sub-rule (1) is either not warranted or the documents furnished therewith are incomplete or incorrect, he may, within a period of fifteen working days from the date of the receipt of the application in FORM GST REG-14, serve a notice in FORM GST REG-03, requiring the regist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proviso to sub-section (1) of section 39 for each quarter or part thereof, has not furnished returns for a continuous period of two tax periods.] [21A. Suspension of registration (1) Where a registered person has applied for cancellation of registration under rule 20, the registration shall be deemed to be suspended from the date of submission of the application or the date from which the cancellation is sought, whichever is later, pending the completion 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) a comparison of the returns furnished by a registered person under section 39 with the details of outward supplies furnished in FORM GSTR-1 or 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 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion has been suspended under sub-rule (2A) for contravention of provisions of rule 10A and the registration has not already been cancelled by the proper officer under rule 22, the suspension of registration shall be deemed to be revoked upon compliance with the provisions of rule 10A.] [(5) Where any order having the effect of revocation of suspension of registration has been passed, the provisions of clause (a) of sub-section (3) of section 31 and section 40 in respect of the supplies made during the period of suspension and the procedure specified therein shall apply." Thus, at the stage of amending the registration, certificate of registration and for incorporating additional place of business, no proof or consent letter or NOC from the property owner is required to be produced. 18. We also noticed that as per Section 29 (2) of the Act, there are 4 grounds for cancellation. As per the respondent, the petitioner has contravened Section 29 (2)(a) of the GST Act inasmuch as it is alleged that registered person has contravened the provisions of the Act and the Rules made thereunder. However, we find that the contention raised by the respondents is wholly misconceived. There is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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