Cancellation of GST Registration Order Without Specific Violation Mentioned can’t be Sustained: HC

Case Details: Star Metal Company v. Additional Commissioner Grade-2 - [2023] 151 taxmann.com 214 (Allahabad)

Judiciary and Counsel Details

• • Piyush Agrawal, J.
  • Aaditya Pandey for the Petitioner.
  • C.S.C. for the Respondent.

Facts of the Case

A survey was conducted at the business place of the assessee and it was found that business place of the firm was not disclosed in the registration certificate. Accordingly, the registration of the assessee was cancelled. The assessee moved a revocation application which was rejected and aggrieved by the said order, the assessee preferred an appeal, which was also dismissed. Thereafter. It filed writ petition and contended that the cancellation of registration suffered from illegality as none of the conditions mentioned in section 29(2) of the GST Act were complied with.

High Court Held

The Honorable High Court noted that as per Section 29 of GST Act, the registration once granted could be cancelled only if one of the five statutory conditions was found present. If GST Authority proposed to cancel the registration then a heavy burden shall lay on the authority to establish the existence of facts which may allow for such cancellation of registration. In the instant case, the notice was issued without mentioning any specific violation as prescribed in Section 29(2) of GST Act. Therefore, the impugned order was liable to be quashed and the authority may issue a fresh notice on any specific ground mentioned under section 29(2) of the GST Act.