In an announcement, the Allahabad HC declared that cancelling GST registration without any reason is an invalid order, and it is not bound by limitation.
The petitioner, M/S Pragati Enterprises, challenged the order that cancelled their GST registration, along with the order dated 11.01.2023, where the appellate authority rejected their appeal, and the order dated 22.01.2022, where their revocation application was denied.
The petitioner, a partnership firm involved in trading and supplying construction material, received a show cause notice for cancellation of registration. The notice instructed the petitioner to respond within seven working days from the date of service.
Due to sickness, the petitioner failed to respond to the show cause notice issued by the respondents within the stipulated period. As a result, an order was passed on 12.11.2021 that cancelled the petitioner’s registration without providing any reason. The appellate authority rejected the petitioner’s appeal on the basis of limitation.
The petitioner argued that as they were not given a chance to be heard during the passing of the order dated 12.11.2021, they should also be entitled to the same benefit as the order passed in the case of Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others.
The court held that the order cancelling the petitioner’s registration did not provide any reason for the action taken and was solely based on the fact that the petitioner did not respond to the show cause notice.
Read more: Order cancelling GST registration without any reason, and it is not affected by limitation Reject by Allahabad HC 2023Justice Vivek Chaudhary, presiding over the case, ruled that the failure to submit a reply to the show cause notice cannot serve as a reason for cancelling registration. Therefore, the court overturned both the order dated 12.11.2021 and the appellate order dated 11.1.2023.
The petitioner is allowed to present themselves before the respondent, along with their response to the show cause notice, a certified copy of the court order, and a copy of the judgment, within three weeks.
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