HC Set Aside Cancellation of GST Registration Without Following Proper Physical Verification Procedure

Case Details: TC Tours Ltd. v. Commissioner, State Taxes Department - [2024] 163 taxmann.com 490 (Jammu & Kashmir and Ladakh)

Judiciary and Counsel Details

• Tashi Rabstani & M.A. Chowdhary, JJ.
• Amrinder Singh & Sheikh Umar Farooq, Advs. for the Petitioner.
• D.C. Raina, Adv. General, & Sajad Ashraf, GA for the Respondent.

Facts of the Case

The petitioner was engaged in providing tour related services. The department issued notice to cancel registration on the ground that business premises was found non-functional at the time of field inspection. The registration was cancelled and petitioner filed writ petition against the cancellation order.

High Court Held

The Honorable High Court noted that the order of cancellation was passed on the ground that business premises was found non-functional at the time of field inspection. However, the physical verification of business premises was conducted without issuing any notice to petitioner as required under Rule 25 of CGST Rules, 2017.

Therefore, the Court held that the cancellation of registration without following proper physical verification procedure under Rule 25 of CGST Rules, 2017 was invalid and liable to be quashed. The Court also directed to restore GST registration of petitioner with effect from date of cancellation.