Chhattisgarh HC stays Cancellation of GST Registration as order lacked Official Examination [Read Order]

The Chhattisgarh High Court stayed the cancellation of registration under GST as the order lacked Official examination.

The assessee, Cheema Local Carrier & Construction has raised the issues in respect of provisional attachment of the Bank Account, cancellation of the registration certificate under the GST and, blocking of input credit ledger is blocked.

Mr. Bhishma Ahluwalia, Advocate for the Petitioner contended that before cancellation of the registration certificate under Section 29 of the CGST Act, the ingredients of Rule 21 of the CGST Rules, which mandate the ground of cancellation of registration must exits; whereas in this case the omnibus show cause notice was issued wherein no particulars were shown as to which contravention has been made. Furthermore, it has been stated that the blocking of the bank account was made on 17.02.2021 under Section 83 of the CGST Act and reply having been filed on 23.02.2021 thereafter no hearing was given as per Rule 159(5) of the CGST Rules, which mandate that when the objection is filed to the account against attachment, the Commissioner after affording an opportunity of being heard may release the said property/ account.

Whereas in this case, no hearing was given which resulted in closure of the business. He further submits that the input tax credit ledger was also blocked without following the procedure as provided under the law. Therefore, Mr. Ahluwalia submitted that blocking of the bank account and cancellation of registration may be stayed so that the petitioner at least may start his business.

The single judge bench of Justice Goutam Bhaduri held that the attachment order of the bank account and cancellation of registration do not show what grounds existed to pass such an order. Since the business of the petitioner stands closed for attachment of the bank account and cancellation of registration, strict compliance is required as per the Act and Rules.

Therefore, the court directed that the attachment of the Bank which was made as per the order shall remain stayed and further the order for cancellation of registration dated 26.03.2021 shall remain stayed, till the next date of hearing.

To Read the full text of the Order CLICK HERE

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