Revocation of cancelled registration
ALLAHABAD HIGH COURT
WRIT TAX NO. – 1845 OF 2024
Avika Construction Proprietorship and Another …..Appellant
V/s
State of U.P. and 2 Others …..Respondent
Honble Justice
Arun Bhansali, CJ. and Vikas Budhwar, J.
Date : 25/10/2024
Appearance:
Shiv Shanker Pal for the Petitioner.
Ankur Agarwal (S.C.) for the Respondent.
In Favour of Assessee
Issues Involved :- The High Court directed the GST authorities to consider the petitioner’s application for revocation of GST registration cancellation, noting the absence of an opportunity for a hearing. Under Section 30 of the GST Act, the court emphasized that revocation applications cannot be dismissed without a hearing, especially when procedural fairness is in question.
Section: Section 30 of GST Act, 2017
Subject: Requirement of a hearing before rejection of revocation applications for GST registration cancellation
Matter Involved: The petitioner’s GST registration was canceled due to non-filing of returns, attributed to their daughter’s illness. Despite submitting a revocation application, the petitioner claimed no hearing was granted. The GST authorities argued that the revocation request was submitted late, thus invalid. The court examined Section 30 of the GST Act, which mandates an opportunity for hearing before rejecting such applications, and emphasized the importance of procedural fairness, particularly when personal hardships impact compliance.
Held by Court: The High Court ruled in favour of the petitioner, directing the GST authorities to provide a hearing on the revocation application. It underscored that Section 30 prohibits rejecting a revocation application without a hearing, reaffirming the petitioner’s right to procedural fairness. The court instructed the authorities to pass a reasoned order within three weeks, allowing the petitioner to submit additional details, thus safeguarding the taxpayer’s procedural rights under the GST framework.
JUDGMENT
1. This writ petition has been filed by the petitioner aggrieved of the order of cancellation of registration dated 10.07.2023 passed by Superintendent, Goods and Service Tax (GST), Jhansi.
2. Submissions have been made that petitioner, on account of illness of his daughter, was unable to file the requisite returns, which resulted in passing of the order of cancellation of registration on 10.07.2023. It is contended that no opportunity of hearing was provided to the petitioner and that the application, which was made by the petitioners on 19.09.2024 seeking revocation of cancellation of registration, has not been decided by the respondents.
3. Learned Standing Counsel submits that a show-cause notice (Annexure-6) was issued to the petitioner to which no response was given, as a consequence, the order dated 10.07.2023 (Annexure-1) canceling the registration has been issued. Further submissions have been made that the application made, seeking revocation, was beyond the time prescribed for the same and, therefore, the same is of no avail.
4. A look at the provisions of Section 30 of GST Act, 2017 reveals that proviso to sub-section (2) provides that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.
5. In the present case, no order has been passed by the respondents on the application seeking the revocation and in those circumstances, it would be required of the respondents to give an opportunity of hearing to the petitioner and pass an order on the pending application of the petitioner.
6. Petitioner would be free to file a fresh, detailed application if so advised. The requisite order would be passed within a period of three weeks from the date a copy of this order is placed by petitioner with the competent authority/a representation is filed by the petitioner, whichever is earlier.
7. With the above directions, the petition stands disposed of.