A division bench of Patna High Court has set aside the Goods and Services Tax (GST) registration cancellation order on ground that the order itself was ‘Non-speaking’.
The bench of Chief Justice K. Vinod Chandran and Justice Madhuresh Prasad allowed the appeal and observed that the form GST REG -19 lacks proper reason to cancel the Goods and Services Tax registration.
Also stated that there is no reason stated as to why the cancellation was ordered and not even the subject of the notice is referred to in the order.
According to the Bihar Goods and Services Tax Act of 2017, the form GST REG -19 has a dedicated column where the grounds for the cancellation can be entered. The Assessing Officer appears to be entrenched in the mindset that no explanations need to be given when an assessee does not show up or when an objection is not submitted.
The High Court relied on the decision of a division bench in the case of Manoj Kumar Sah versus The State of Bihar and Anr, . Further set aside the order and directed to reconsider the issue.
The bench also took note of notification No. 3 of 2023, which the Central Government introduced in response to the Goods and Services Tax Council’s recommendations.
According to this notification, if a registered person’s registration has been cancelled due to failure to file returns under Sections 29(2)(b) and 29(2)(c) of Central Goods and Services Tax, 2017, they have until June 30, 2023, to request the revocation of cancellation of the order.
The Court added that the assessee would also be entitled to avail of the said remedy if the cancellation has been effected under Section 29(2)(c) and Section 29(2)(c) Central Goods and Services Tax.
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