Order Cancelling GST Registration is Not Sustainable when Reply to SCN Considered while Reply was not Filed: HC

Case Details: Vijayakumar Thimasandra Mahadevappa v. Commissioner of Goods and Services Tax - [2023] 150 taxmann.com 250 (Karnataka)

Judiciary and Counsel Details

• • B.M. Shyam Prasad, J.
  • Mahesh Arkalgud, Adv. for the Petitioner.
  • Jeevan J Neeralgi, Adv. for the Respondent.

Facts of the Case

The department issued a show cause notice proposing cancellation of GST registration of petitioner. It didn’t reply and the GST registration of petitioner was cancelled. It filed appeal against the cancellation order but appeal was dismissed on ground of delay. It filed writ petition before the High Court for restoration of GST registration and contended that the order of cancellation of registration was arbitrary exercise of jurisdiction.

High Court Held

The Honorable High Court noted that the reply to show cause notice was not filed by petitioner but the impugned order stated that the reply was considered which showed complete lack of application of mind in cancelling petitioner’s registration.

Moreover, the petitioner submitted evidences which showed that he was hospitalized for over a period of one month and had to go through a prolonged period of convalescence. Therefore, after considering lack of application of mind in cancelling the petitioner’s registration and situation of petitioner, it was held that the impugned order was to be quashed subject to condition of filing returns and cancellation order shall stand revived if returns were not filed.