GST Registration Cancelled without issue of Show cause notice is invalid : High Court
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Facts of the Case
Once Assessee himself as a partner of a partnership firm has submitted an application for cancellation of his GST registration, (30th may 2021)
GST Registration cancelled after 30 days of filing application. (12th July 2021) without giving any show cause Notice.
Taxpayer View : GST registration has to be cancelled within 30 days . In case, if no decision is taken, within a period of 30 days, in that eventuality, any subsequent cancellation of registration after the expiry of the aforesaid period would be without jurisdiction.
Taxpayer should have been mandatorily provided with an opportunity of hearing and in the absence of there being any prior show cause issued to the petitioner, calling his explanation, the order of cancellation of his registration would be apparently and statutorily bad in the eyes of law
Decision of High Court
where the registration is required to be cancelled, under either of the modes, i.e. on account of the commission of the default or on account of an application submitted by the registered assessee, the opportunity of hearing is mandatory, required to be provided.
Order impugned apparently suffers from the violation of a statutory provisions of non-providing of any opportunity as contemplated under Sub-section (2) of Section 29 of the Act, with the consensus of the parties, the impugned order is quashed