Cancellation of GST registration on the basis of petitioner’s absence during spot visit is invalid: HC

Case Details:  Jatin Bhagwatlal Shah v. State of Gujarat - [2023] 147 taxmann.com 313 (Gujarat)

Judiciary and Counsel Details

• • Ms Sonia Gokani & Mrs Mauna M. Bhatt, Jj.
  • Uchit N. Sheth for the Petitioner.
  • Ms Pooja Ashar for the Respondent.

Facts of the Case

The department issued notice to cancel the registration certificate of petitioner on the ground that it had not filed the returns under the GST Act for continuous period of six months. It was also alleged that there was absence of conduct of business in principal place of business.

The petitioner replied to the notice but order of cancellation was passed on the ground that he did not remain present even though he did submit the reply. The revocation application and appeal filed by the petitioner were also rejected by the department. Therefore, he filed writ petition before the Court.

High Court Held

The Honorable High Court noted that the petitioner had shifted to new address. The department conducted spot visit and registration was cancelled on the ground that the petitioner was absent in principal place of business at time of spot visit. However, the facts were explained by petitioner when he appeared before the authority.

The Court also noted that in absence of any intimation during the spot visit, it was difficult for petitioner to remain present. Therefore, it was held that cancellation of registration on ground that petitioner was absent at time of spot visit was not valid and cancellation of registration with retrospective date was fully impermissible. Thus, the Court set aside the order of cancellation of registration.