The decision to cancel the GST registration without giving a reason is invalid, according to the Allahabad High Court (HC), and it was not subject to a time restriction.
The order has been challenged by the applicant, M/s Pragati Enterprises for cancelling the GST registration of the applicant and the order on 11.01.2023 in which the petition that the applicant backed would get eliminated by the appellate authority and the order on 22.01.2022 in which the applicant’s revocation application would get rejected.
The petitioner is a partnership firm that engages in commerce, the delivery of building supplies, etc. The petitioner received a show cause notice for registration cancellation, with instructions to respond to the notice within seven working days after the notice of the delivery date.
Due to illness, the petitioner was unable to respond to the respondents’ show cause notice within the allotted time. As a result, an order was issued on November 12, 2021, cancelling the petitioner’s registration without providing a reason. The appellate authority dismissed the petitioner’s appeal on the grounds of limitation.
Read Also: HC Quashes Cancellation Order of GST Reg. Without Giving Any Reason
According to the argument, the current petitioner is also entitled to the benefits of the ruling in the matter of Technosum India Pvt. Ltd. Lucknow vs. Union of India and others since he was not given an opportunity to be heard when the order dated 12.11.2021.
It was decided that the challenged decision simply cancelled the petitioner’s registration because a response to the show cause notice was not provided, and it gave no further justification for doing so.
The non-submission of a response to the show cause notice cannot be a basis for the cancellation of the GST registration, according to a Coram composed of Judge Vivek Chaudhary, who also set aside the ruling dated 12.11.2021 and the appellate order dated 11.1.2023.
Within three weeks, the petitioner may appear before the respondent with the show cause notice response, the certified copy of this order, and a copy of the decision.
| Case Title | Pragati Enterprises Vs Commissioner |
| Case No. | WRIT TAX No. – 52 of 2023 |
| Date | 28.02.2023 |
| Counsel for Petitioner | Amit Harsh Sinha and Prabhat Kumar |
| Counsel for Respondent | C.S.C |
| Allahabad High Court | Read Order |
