Order for cancellation of GST Registration citing different reason than what is mentioned in SCN is clearly arbitrary: High Court

The present petition has been filed by the petitioner challenging the order dated 31.01.2023 & order dated 20.07.2022 passed by the respondent whereby the registration of the petitioner under GST was cancelled.

The counsel for the petitioner argues that a show cause notice was served on the petitioner in which the following ground was mentioned for proposing cancellation of GST registration:

"THE DRC-03 FOR INTEREST LIABILITY DID NOT FILE BY THE TAXPAYER".

The petitioner gave a reply to the said show cause notice, however, an order came to be passed giving the following reason for cancellation of the registration:

"AS PER DY COMMISSIONER, RANGE-C SGST LETTER C.NO.1737, FIRM FOUND NON EXISTENCE AT THE GIVEN ADDRESS."

The petitioner preferred an appeal, which was also dismissed.

He argues that the order is wholly arbitrary and illegal, inasmuch as in the show cause notice, the reasons proposed for cancelling the registration were different from the reasons on which the order cancelling the registration has been passed.

He argues that the show cause notice is intended to give opportunity to the assessee to file a proper reply against the allegations levelled and it is incumbent upon the authority to decide the same only on the basis of the allegations levelled in the show cause notice whereas in the present case, the adjudicating authority has travelled beyond the allegations levelled against the petitioner in the show cause notice.

Held by High Court

:

Cancellation of GST Registration

:

Principle of Natural Justice

taxreply.com © 2024. All Rights Reserved