Cancellation of GST registration without a hearing violates principles of natural justice; applicants can seek restoration by fulfilling statutory requirements.

JUDGMENT :

SANJAY KUMAR MEDHI, J.

Heard Shri R. S. Mishra, learned counsel for the petitioner and Shri S. C. Keyal, learned Senior Standing Counsel, CGST for the respondents.

2. It is the case of the petitioner that she has been carrying out her business under the name & style, “M/S L. Gohain & Brothers”. She is the sole proprietor and is an assessee registered under the Central Goods and Services Tax (CGST) Act, 2017/Assam Goods and Services Tax (AGST) Act, 2017 bearing registration No. 18BAPPB756Q1ZX. Because of non-filing of GST returns for a continuous period of six months, the petitioner was served with a show cause notice bearing reference No. ZA180420003782X dated 30.04.2020 asking her to furnish reply to the aforesaid notice within a period of 7 (seven) days from the date of service of notice and it was mentioned in the aforesaid show cause notice that if the petitioner fails to furnish a reply within the stipulated date or fails to appear for personal hearing on the appointed date and time, the case will be decided ex-parte on the basis of the available records and on merits. However, no date of hearing was notified. Thereafter, the impugned order dated 23.05.2020 was passed by the Superintendent, Naharkatia- 1, Naharkatia Range, whereby the petitioner’s GST registration has been cancelled without assigning any reason.

3. The petitioner contends that due to Covid-19 Pandemic Petitioners office was closed. Therefore, she could not submit any reply to the said show cause notice. It is further contended that when the petitioner came across the said notice, the time for filing reply was already over and order had also been uploaded in the portal.

4. The petitioner further contends that she updated all her pending returns upto the month of May, 2021 as allowed by the GST portal and while updating her returns, the petitioner has also discharged all her GST dues along with his late fees and interest.

5. Thereafter, the petitioner tried to file the necessary application seeking revocation of GST cancellation, however, the same could not be filed as the time limit prescribed for filing of revocation application was elapsed and a message was displayed in the screen “timeline of 270 days from the date of cancellation order provided to taxpayer to file application for revocation of cancellation is expired.”

6. Being aggrieved, the petitioner has approached this Court by filing the present writ petition.

7. Mr. Mishra, learned counsel for the petitioner has submitted that the petitioner is ready and willing to comply with all the formalities required as per proviso to sub-rule (4) of Rule 22 of the CGST Rules, 2017.

8. As per Section 29 (2)(c) of the Act, an officer, duly empowered, may cancel the GST registration of a person from such date, including any retrospective date, as he deems fit, where any registered person, has not furnished returns for a continuous period of 6 (six) months. Rule 22 of the CGST Rules, 2017 has laid down the procedure for cancellation of the registration.

9. Rule 22 of the CGST Rules, 2017 being the bone of contention, is extracted herein below:-

Rule 22 : Cancellation of Registration

(1) Where the proper officer has reasons to believe that the registration of a person is liable to be cancelled under Section 29 , he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled.

(2) The reply to the show cause notice issued under sub-rule [1] shall be furnished in FORM REG-18 within the period specified in th