Cancellation of GST Registration without following statutory procedure

Case Details:

Issue- In the above case, the petitioner has challenged the action of the respondent Authority of cancelling the registration and also of rejecting of application for revocation of cancellation under the Gujarat Goods and Service Tax Act, 2017. Show cause notice was issued on 24.06.2019 by the respondent by the cancellation of registration on the ground that it has been obtained by means of fraud and willful mistake and by suppression of facts. The petitioner was directed to appear on 28.06.2019, however, when no physical notice was received and as the petitioner is not techno savvy, he could not accede. Correspondingly, respondent cancelled the registration of the petitioner without making any mention or reason of cancellation. Application was filed for revocation of cancellation of registration but the same was rejected alleging involvement of petitioner in fake billing.

Held- It was held that no procedure had been followed by the proper officer and had not chosen to issue any notice to show cause indicating his intention of rejection. Certain statutory rules, which provided the prescribed limit, were disregarded and therefore, this Court had acceded to the request of hearing the matter from the stage where it was left by giving the timeline for those stages is to be completed. It appears that pursuant to this order dated 24.11.2021, we noticed that on 13.12.2021, a letter is addressed to the Commercial Tax Officer seeking the revocation of cancellation of pending matter, where it is urged that without following the due procedure prescribed under the CGST Rules, the application for revocation is in the Form of GST REG-21 and GST portal has been preferred. It is also further urged that the Court had passed an order for ready reference, the application for revocation due to unknown reasons is yet to be decided, the directions of the Court have been sent. On 16.12.2021, he had been requested to furnish the documentary evidences. Yet another application of 27.12.2007 has been given, where also he has taken a stand that there is no show cause notice giving the details. He has no idea as to how they have alleged of the fraud or misrepresentation, the authority concerned for want of necessary documents and also on the ground that this is a case where investigating agency has already noticed. The bogus billing in case of the present petitioner and others, has already denied the cancellation of registration. Thus, show cause notice which has been issued is quite cryptic. Therefore, SCN and Impugned order were set aside with a liberty to authority to issue a fresh show cause notice.