HC Decides to Not Consider GSTN Cancellation Order Without Any Violation

A Division Bench of the Andhra Pradesh High Court ruled, both the impugned GST show cause notice and the cancellation order of the registration would not be bearable inside the statute since both of them would not be transparent to learning the intention of the issuing authority.

The applicant, M/s SA traders are disappointed that the registration cancellation of the applicant under the GST act 2017 is not legal, arbitrary, and without comply with the principles of natural justice and towards the consequential direction to set aside the impugned proceedings of the GST officer, commercial taxes-II.

The petitioner was represented by Bhaskar Reddy Vemireddy, while the Revenue Department was represented by the learned government representative.

For the applicant, no show cause notice and no order is able to show the violation, as specified in the show cause notice “in case the registration has been obtained by means of fraud, wilful misstatement or suppression of facts”

It furnished that, in the cancellation order, the same has been specified that upon verification of GSTR 1 vs GSTR 3B returns and sales turnover, in a time period of 5 months, TRP would be made the buying and the scrap sale stands at Rs 9.63 cr to which he has furnished the clear records. Therefore the transactions that emerged would be doubtful and therefore the enrollment would be cancelled as per the impugned order.

The Bench of Justice Durga Prasad Rao and Justice T Mallikarjuna Rao found, “both show cause notice as well as the order of cancellation of registration is dubious enough and failing to divulge the misdeed or fraud allegedly committed by the petitioner.”

Read also: Govt Issues Advisory on Cancelled GST Registration Restoration

Based on these observations, the Andhra Pradesh High Court set aside the impugned order and permitted the Revenue to provide the new Show Cause Notice.