Cancellation of Form GST REG-31 Registration without Due Service of SCN: Kerala HC restores GST Registration [Read Order]

The Kerala High Court has recently set aside the order canceling GST Registration of assessee, M/s Western Offshore & Marine Projects Pvt. Ltd.

The petitioner had approached the Court challenging an order issued by the State Tax Officer canceling the registration granted to the petitioner under the provisions of Central Goods and Services Tax (CGST)/State Goods and Services Tax Act (SGST).

The petitioner submitted that the provisions of Section 29 read with Rule 22 of the CGST/SGST Rules clearly indicate that the petitioner was entitled to a show cause notice in Form REG-17 before an order or cancellation is issued in terms of Section 29.

The learned Senior Government Pleader (SGP) Thushara James admitted that a show cause notice in form REG-17 had not been issued to the petitioner.  The department was represented by R Harishankar.

Tomson T Emmanuel, on behalf of the assessee, submitted that, no such notice was issued and the only notice issued to the petitioner was one regarding the suspension of his registration in Form REG-31.

It was submitted that the necessary notice ought to have been automatically generated, by the respondent-revenue. It was submitted by the SGP that, without standing on technicalities, the matter can be remitted to the 1st respondent for considering the case of the petitioner.

The High Court Single Bench of Justice Gopinath P, thereby quashed the cancellation of registration and allowed the writ petition of the assessee, while saving the liberty of the revenue to initiate or continue the proceedings against the assessee in accordance with law.

To Read the full text of the Order CLICK HERE

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