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M. S. SONAK, JITENDRA JAIN
LJ- Victoria Properties Private Limited – Appellant
Versus
Union of India – Respondent
JUDGMENT :
(Per Jitendra Jain J):-
1. Rule. By consent of the parties taken on production board and heard finally since only legal issue is involved.
2. By this petition under Article 226 of the Constitution of India, the petitioner seeks to challenge the notice dated 21 August 2024 issued under Section 65 of the Maharashtra Goods and Services Tax Act, 2017 (“SGST Act”) in Form No. GST ADT-01 read with Rule 101 of the Goods and Services Tax Rules, 2017 (GST Rules) by which the respondents seek to conduct an audit for the financial year 2020-21. Consequently, the petitioner also aims to challenge the preliminary audit findings dated 11 October 2024.
Brief facts :-
3. The petitioner was engaged in the rental and leasing services of commercial properties and other ancillary activities relating to the same.
4. On 2 March 2019, the petitioner was issued a registration certificate under the Central Goods and Services Tax Act, 2017 (CGST Act). After conducting business since then, on 27 March 2023, the petitioner applied for cancellation of its CGST registration on the ground that they have ceased to be liable to pay tax on account of the closure of business. On 2 May 2023, the respondents pass
The audit provisions under Section 65 of the SGST Act apply to individuals who were registered during the audit period, even if their registration is cancelled thereafter.
A cancellation of GST registration must be a speaking order, providing clear reasons for its decision, especially when it entails adverse civil consequences.
Administrative actions affecting business registrations must align with statutory procedures and provide due process, including valid reasoning for cancellations under GST law.
The cancellation of GST registration must be supported by a reasoned order; failure to provide reasons renders the order illegal and violates principles of natural justice.
The importance of providing detailed reasons for cancellation of registration and the need for compliance with the principles of natural justice.
GST registration cancellation quashed as arbitrary for ignoring proprietor's ill-health causing temporary business halt, issuing vague unreasoned show-cause notices, and passing mechanical orders wit....
The audit report's delay does not invalidate show cause notices under the CGST Act if they comply with statutory provisions, as the audit serves merely as additional material for initiating action.
A cancellation order under the CGST Act must be a speaking order, providing reasons for the decision; failure to comply renders the order invalid.
The cancellation of GST Registration without providing reasons violates principles of natural justice and statutory requirements, rendering the order illegal.
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