A division bench of the Uttarakhand High Court has upheld the maintainability of the writ petition challenging the order cancelling GST registration by holding that the same amount to violation of right to livelihood.
The assessee, a mason / painting professional, registered under GST in the State of Uttarakhand. The GST registration of the petitioner was cancelled on the ground of non-payment of tax. The petitioner approached the High Court challenging the order. The department contended that the writ petition cannot be maintainable in view of the availability of alternative remedy to the petitioner under the statute.
A bench of the Acting Chief Justice Shri Sanjaya Kumar Mishra and Justice Shri Ramesh Chandra Khulbe observed that “It is apparent from the record that a notice was given on the website, which in our considered opinion, is not sufficient, and a personal notice has to be given before cancellation of the registration. Therefore, the Court can invoke its jurisdiction under Article 226 of the Constitution and hold that the orders passed by the learned Commissioner can be interfered in a writ jurisdiction.”
“In this case, the petitioner/appellant is a semi-skilled labourer working as a painter doing painting on doors, windows of the houses. Now-a-days bills for any work executed for a private player or, even for the Government agency, are drawn on-line. In most cases, the payments are made direct to the bank on production of the bill with the GST registration number. In the absence of GST registration number, a professional cannot raise a bill. So, if the petitioner is denied a GST registration number, it affects his chances of getting employment or executing works. Such denial of registration of GST number, therefore, affects his right to livelihood. If he is denied his right to livelihood because of the fact that his GST Registration number has been cancelled, and that he has no remedy to appeal, then it shall be violative of Article 21 of the Constitution as right to livelihood springs from the right to life as enshrined in Article 21 of the Constitution of India. In this case, if we allow the situation so prevailing to continue, then it will amount to violation of Article 21 of the Constitution, and right to life of a citizen of this country,” the bench said.
Analyzing the facts and relevant precedents, the Court said that “the learned Single Judge has committer error by holding that the writ petition is not maintainable, and, therefore, the same requires to be set aside. However, we are also aware of the fact that the learned Single Judge has not given any findings about the merits on the claim of the petitioner/appellant so far as the cancellation of his GST Registration number is concerned. Hence, the matter has to be remanded.”
Subscribe Taxscan Premium to view the Judgment
Buy books of essential tax practice with exciting offers at shopscan.in
