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TMI Blog2025 (5) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... is a proprietorship firm, represented by its sole proprietor, which carries on business with the trade name, M/s Enling & Co. and its principal place of business at Village - Dumba, District - Changlang, Arunachal Pradesh. The petitioner got itself registered as a proprietorship firm under the Central Goods and Services Tax [CGST] Act, 2017 ['the CGST Act', for short]. It is stated that when the petitioner applied for registration, the petitioner was issued Registration Certificate in Form GST REG-06 with Registration no. 12AAHPE9119RIZE w.e.f. 07.08.2017 and the Registration Certificate to that effect was issued on 28.02.2018. 3. The petitioner was issued the Show Cause Notice on 14.01.2023 by the Proper Officer asking her to show cause as to why the registration issued to it under the CGST Act should not be cancelled due to failure on her part to furnish returns for a continuous period of six months. The petitioner was thereby, asked to furnish a Reply within thirty working days from the date of service of the Show Cause Notice. The petitioner was also directed to appear before the Proper Officer at 11-00 on 11.02.2023. It was further mentioned that if the petitioner would fail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the writ petition, W.P.[C] no. 1771/2025, which was disposed of by an Order dated 05.04.2025. 7. Dr. Gogoi, learned Standing Counsel, CGST for the all respondents has submitted that the default of not 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 herself 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice issued under sub-rule [2A] of Rule 21A is found to be satisfactory, the proper officer shall drop the proceedings and pass an order in FORM GST REG-20 : 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 completion of the proceedings 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 14.01.2023 mentioned ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further provided that if the petitioner as the noticee would fail to furnish a Reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case would be decided ex-parte on the basis of available records and on merits. 17. When the contents of the Show Cause Notice dated 14.01.2023 and the contents of the impugned Order dated 18.03.2023 are read together, it is found that by the Order dated 18.03.2023, the Proper Officer while cancelling the GST Registration of the petitioner w.e.f. 18.03.2023, has not assigned any reason. The Proper Officer in the Order dated 18.03.2023 has recorded that : 'This has reference to your reply dated 14.02.2023 in response to the notice to show cause dated 14.01.2023. 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 the following reason[s]'. 18. When the contents of the Show Cause Notice dated 14.01.2023 and the contents of the impugned Order dated 18.03.2023 are read together, it is found that the Proper Officer has made mention of a Reply dated 14.02.2023 submitted from the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur written or verbal submission 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 X X X X Extracts X X X X X X X X Extracts X X X X ..... ocedure 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 14.01.2023 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, unless such obligation is expressly or impliedly dispensed with. It is implicit in the principles of natural justice and fair play that an adjudicating authority should record reasons as it is part of fair procedure, more particularly, when the decision is likely to affect the right of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h all the pending returns and to make 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 the prescribed Form, that is, Form GST REG-20. 29. In the above fact situation obtaining in the case in hand, it is open for the petitioner to submit a Reply to the Show Cause Notice dated 14.11.2023 showing reason[s] as to why the GST Registration should not be cancelled in terms of sub-rule [2] of Rule 22 of the CGST Rules read with Section 29 [2] [c] of the CGST Act. In the alternative, the petitioner-assessee, at the time of or instead of, replying to the Show Cause Notice served under sub-rule [1] of Rule 22 of the CGST Rules, can furnish all the pending returns and make full payment of the tax dues along with the applicable interest, late fee and penalty, if any. It is, therefore, observed that it would be open for the petitioner-assessee to avail either of the two options. This Court, for ends of justice, deems it just and proper to grant a period of one month from today to the petitioner to avail either of the two permissible options. If the petitioner wants to know her outstanding dues including ..... X X X X Extracts X X X X X X X X Extracts X X X X
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