GST: HC of Patna Restores GSTIN Over No Response to Petitioner

Due to the non-consideration of the response to the Show Cause Notice (SCN) and the delay during the conflict, a Division Bench of the Patna High Court (HC) reinstated the GST Registration.

M/s Kala Coke and Chemicals Pvt Ltd., the petitioner, asked the court to issue a consequent writ order to overturn the Additional Commissioner for State Tax (Appeals decision)’s to deny the appeal for the reversal of the cancellation of GST Registration.

The applicant has asked the Court for the issuance of a writ/order for revoking the ex-parte order that has been issued via the Joint Commissioner of State Tax in which the GST Registration of the applicant under the GST Act, 2017 has been cancelled without giving the petitioner’s arguments the consideration they deserve.

According to Section 29 of the 2017 Bihar Goods and Services Tax Act, the Joint Commissioner of State Taxes revoked the petitioner’s GST registration. There had never been a notice to show cause before that the petitioner may reply to.

The properties of the case were analyzed by the Court comprising Chief Justice Sanjay Karol and Justice Partha Sarthy. Court revealed that through the passage of the mentioned order, The petitioner is subject to civil and criminal penalties and that The show cause and the answer to it should have at least been mentioned by the authority, but it wasn’t.

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The Bench stated that the order is not only silent but also enigmatic in character, making it impossible to infer the cancellation’s cause from it. The order has to be revoked since it violates natural justice principles and has negative legal and financial repercussions.

The Bench additionally observed that the appellant had filed for registration and that the Authorities had granted the petitioner a specific registration number after positively considering the petitioner’s request under the Act. The petitioner’s company began operations following the Covid-19 Pandemic. Even while the petitioner passionately requested that the delay in receiving the return be excused, avoiding termination of the GST Registration by the taxpayer, the authorities should have done so given the particular facts and circumstances.

Revoking the order the court sees that the “Petitioner’s registration restored, with a further direction to the Commissioner, Department of State Taxes, Government of Bihar, Patna to finalize the petitioner’s assessment and/or pass appropriate orders, in accordance with the law.”