The Allahabad High Court (HC) has held that the order cancelling GST Registration without any reason is invalid and it was not hit by limitation.
M/S Pragati Enterprises, the petitioner challenged the order cancelling the GST Registration of the petitioner as well as the order dated 11.01.2023 whereby the appeal preferred by the petitioner has been rejected by the appellate authority and the order dated 22.01.2022 whereby revocation application of the petitioner has been rejected.
The petitioner is a partnership firm engaged in trading business and supply of construction material etc. A show cause notice for cancellation of registration was issued to the petitioner, directing the petitioner to furnish a reply to the notice within seven working days from the date of service of the notice.
The petitioner failed to respond to the show cause notice issued by the respondents within the stipulated period on account of sickness, and an order came to be passed on 12.11.2021 whereby registration of the petitioner was cancelled without assigning any reason. The appeal filed by the petitioner was rejected by the appellate authority on the ground of limitation.
It was contended that since he has not been heard while passing the order dated 12.11.2021, the present petitioner is also entitled to the benefit of the order passed in the case of Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others.
It was held that the impugned order does not assign any reason whatsoever for cancelling the registration of the petitioner and is passed only on the ground that a reply to the show cause notice is not given.
A Coram comprising Justice Vivek Chaudhary held that the non-submission of reply to the show cause notice cannot be a ground for cancellation of the registration and further set aside he order dated 12.11.2021 as well as the appellate order dated 11.1.2023.
The petitioner is permitted to appear before the respondent along with the reply to the show cause notice and the certified copy of this order as well as the copy of the judgment, within three weeks.
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