Allahabad HC: GST Number Cannot Be Cancelled Without Violating Section 29(2) Conditions or Specific Findings

It was carried by the Allahabad High Court that the GST registration could not be cancelled if u/s 29(2) of the Goods and Services Tax (GST) Act there does not exist any condition that breach or if particular findings justifying the cancellation are not recorded.

In reply to a petition contesting the cancellation of the applicant’s GST registration and the subsequent rejection of their revocation application, the judgment was delivered.

The applicant, Shree Shyamji Traders is in the iron and steel scrap business and had their GST registration cancelled after a survey performed via the GST Department, which asserted that no business activity or premises were discovered at the registered address.

The registration stayed cancelled even after filing a revocation application and following appeals. The applicants claimed that the cancellation and rejection orders were furnished without furnishing an effective chance for a hearing or recording the particular reasons.

It was discovered by the court that the cancellation order is unable to direct any breach of the 5 conditions cited u/s 29(2)(a) to (e) of the Act. Also, neither the revocation rejection nor the appellate orders furnished reasons or findings to prove the taken measure.

Laying its former ruling in Apparent Marketing Pvt. Ltd. v. State of U.P., Justice Piyush Agawral said that registration can solely be cancelled if regulatory prerequisites are breached and due process is followed.

The cancellation and revocation orders have been set aside by the court asking the respondent authority to provide a fresh notice if needed, u/s 29(2) with the particular foundations and in compliance with the statutory.

Also, the Allahabad High Court has charged Rs 10,000 to the proper officer for the procedural lapses to get filed to the applicant within 1 month.