NO cancellation of GST Registration without personal hearing : High Court

Facts of the Case

By means of a show cause notice the petitioner was directed to show cause within seven working days from the date of service of the notice why its registration should not be cancelled.

Neither any date was fixed for hearing nor the petitioner was even called to “place the case” before the GST Authority

The petitioner submitted its reply but, by means of an order the registration of the petitioner was cancelled for the reason that no one was found at the place of the business and neither any business activity nor any bill book were found at the time of survey and the landlord of the premises had informed the survey team that no one came there to start a business and no business activity takes place there.

The order further observes that after scrutinizing the return, it was found that the petitioner had purchased goods from non-existing dealers and availed bogus input tax credit with mala fide intention.

It was also found that after granting registration, the petitioner did not furnish bank account details in due time in terms of Rule 10A.

The appeal filed by the petitioner was also dismissed, citing the very same reasons as in the order of cancellation.

Decision of High Court

In the considered view of this Court, the denial of opportunity of hearing to the petitioner as is mandated in the CGST Act 2017 vitiates the proceedings as well as the orders cancelling the registration of the petitioner.

the order of cancellation of registration as well as order passed in the appeal dated are quashed.