Assessee Was Not Entitled to Cross-examine Witnesses Relied Upon By Dept. While Cancelling Registration | HC

Case Details: Steel India v. State Tax officer - [2023] 156 taxmann.com 250 (Kerala)

Judiciary and Counsel Details

• • Dinesh Kumar Singh, J.
  • Harisankar V. Menon, Meera v.menon, R. Sreejith, K. Krishna & Parvathy Menon, Advs. for the Appellant.
  • Jasmine M.M. for the Respondent.

Facts of the Case

The petitioner received a show cause notice issued by GST Authority for cancellation of its registration on ground that it was not conducting business from its declared place of business. It filed reply to the notice stating that business premises were temporarily closed due to unforeseen reasons and would resume business when conditions improved. But the GST Authority cancelled its registration.

It filed writ petition against the cancellation order and contended that it had been denied opportunity to cross-examine landlord whose statement had been relied upon by department while cancelling registration as there was violation of principles of natural justice.

High Court Held

The Honorable High Court noted that the petitioner did not file any document for change of its business place nor supported its claim that it was running business from given address by producing any documentary or oral evidence. The Court further noted that the petitioner was not entitled to cross examination as enquiry conducted by department was not a trial, but just summary proceedings.

Therefore, it was held that there was no infraction of principles of natural justice and action by department was not arbitrary as reasonable opportunity was given to submit reply to notice. However, the petitioner may avail remedy of appeal against cancellation of registration.