GST Registration Cancellation Quashed; Restoration Ordered Upon Compliance

GST Registration Cancellation Quashed; Restoration Ordered Upon Compliance

Issue: Whether the cancellation of GST registration is valid when the tax authorities concluded that the taxpayer was not functioning at the declared principal place of business, despite the taxpayer providing evidence to the contrary.

Facts:

• The tax authorities cancelled the assessee’s GST registration.
• The cancellation was based on the conclusion that the assessee was not functioning at the declared principal place of business.
• The assessee produced documents proving their existence and functioning at the registered address.

Decision:

• The court held that the documentary evidence established that the assessee was indeed functioning at the declared principal place of business.
• The sole ground for cancellation was contrary to the material on record.
• The court quashed the impugned cancellation order.
• The court ordered the restoration of the GST registration subject to the payment of up-to-date taxes and the filing of pending returns.
• The petition was allowed.

Key Takeaways:

• This case emphasizes the importance of verifying the actual functioning of a business at its registered address before cancelling GST registration.
• Documentary evidence provided by the assessee must be given due consideration.
• Cancellation orders based on conclusions contrary to the material on record are liable to be quashed.
• Restoration of GST registration can be conditional upon compliance with outstanding tax and return filing obligations.
• This decision protects businesses from unwarranted cancellations and ensures that cancellations are based on factual evidence.