Rs 50,000 cost is being levied on the arbitrary cancellation of GST registration, by Allahabad High Court.
The single bench of Justice Pankaj Bhatia sees that the random practice of power to refuse the enrollment in a way where the same would have been performed has adversely impacted the petitioner. Indeed the revenues have been affected by it which can get collected in GST had the petitioner been permitted to operate commercial activities. These actions were not according to the ease of performing the businesses.
The applicant would be the partnership firm doing the business of manufacturing and trading veneer and was granted the registration number under the CGST Act 2017. Before the enforcement of the GST, the petitioner has registered under the UPVAT Act and the CST Act also. The assessments were made towards the applicant establishment under the VAT Act and the CST Act for the assessment year 2017–18.
The applicant claimed to be carrying out the business through the enrolled place of business as enrolled with the GST council meeting and was furnishing the taxes. Before the applicant, a show cause notice was issued under Rule 22(1) of the GST Rules. Alleging, that as per data that come to the notice of the Assistant Commissioner, the GST registration is need to be revoked. Due to a non-functioning business at the principal place, the taxpayer’s GST enrollment was cancelled.
The applicant, during uploading his e-way bill, the registration of the firm of the applicant was cancelled dated 8/5/2020. The applicant proceeds with the application for the cancellation of the order towards the provisions mentioned in Section 30 of the U.P. GST Act, 2017. The application specified the facts regarding the revocation, of the applicant in June 2020.
Under section 30 of the act, the application was in the specified time. Answering the application that the applicant has filed, a show cause notice was issued dated 13.06.2020 mentioning that the revocation application was responsible to get eliminated.
Answering the show cause notice, the applicant proceeds to the application asking for a 15-day extension of time to furnish a reply towards the daughter marriage of the applicant to be conducted on June 24, 2020. Excluding acknowledging the application, an order has been passed dated 15.07.2020 denying the application for revocation of cancellation of the GST registration for the reasons as recorded in the show cause notice, no effective elaboration was obtained within the mentioned time.
The applicant opposed that the show cause notice has no point where the applicant was called for filing the answer. The show cause notice was directed to alert the assessee for filing the reply towards alleged charges with respect to him, in which the show cause notice speaks nothing for the answer incurred towards the applicant.
On the investigation date, there were no goods found, and as per the registration were revoked. The same would appear post to the revocation of the registration, some goods might get placed by the applicant in the place.
The court held that the heads who furnsihed the contested order were unable to act as per the spirit of the GST act.
