The Kerala High Court directed the Kans Wedding Centre to approach the proper officer for preponement of proceedings for cancellation of registration.
The petitioner, Kans Wedding Centre, was regularly paying tax and in the last year but, because of the COVID-19 pandemic, his business collapsed.
The petitioner is even now, ready and willing to file all returns and to pay tax which is due and payable by them.
Consequently, the respondent authority issued notice suspending its registration.
The petitioner contended that the respondent ought not to have issued notice suspending its registration as it is affecting his business. The petitioner, therefore, prays for quashing and setting aside the communication.
The Government Pleader opposed the petition by contending that the communication is only a notice in GST Form No. GST REG-17/31 issued under Rule 22(1) of the GST Rules. According to the learned Government Pleader, Section 29 of the GST Act 2017 empowers the proper officer to cancel the registration after issuing necessary show-cause notice on failure to file returns for a period of six months.
According to the Government Pleader urged that the petitioner is bound to respond to the show-cause notice for cancellation of registration and if necessary, he can approach the proper officer even for preponement of date fixed for giving cause.
The single judge bench of Justice A.M. Badar in the wake of these statutory provisions, found no fault on the part of the proper officer in issuing the show-cause notice asking the petitioner to show-cause as to why the registration of the establishment should not be canceled.
The court held that the proceedings for cancellation of registration will continue for a long period and till then his registration is under suspension causing loss to his business can be taken care of by directing the petitioner to approach the proper officer for preponing the date.
However the Court permitted the petitioner to approach the proper officer for preponement of date of hearing by submitting his reply to the show-cause notice. If such request is made by the petitioner, the proper Officer shall consider the same and shall decide the proceedings expeditiously. If the petitioner cooperates with the proper Officer, it is expected of the proper Officer to dispose of the proceedings for show-cause notice of cancellation within a period of three weeks from the date of appearance of the petitioner.
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