The procedural irregularities in cancellation of GST registration, including insufficient notice duration and incorrect form usage, violate principles of natural justice, necessitating reinstatement of registration.

JUDGMENT :

MANISH CHOUDHURY, J.

Heard Mr. R.S. Mishra, learned counsel for the petitioner; Ms. R.R. Saikia on behalf of Mr. S.K. Medhi, learned CGC for the respondent no. 1; and Mr. K. Jain, learned counsel on behalf of Mr. S.C. Keyal, learned Standing Counsel, CGST for the respondent nos. 2 & 3.

2. The petitioner got herself registered under the provisions of the Central Goods and Services Tax [CGST] Act, 2017 for carrying out the business of a goatery firm. The petitioner was issued Registration Certificate in Form GST REG-06 under Rule 10[1] of the Central Goods and Services Tax Rules, 2017 [‘the CGST Rules, 2017’, for short] on 13.06.2023.

3. The respondent no. 3 on 10.06.2024 issued a Show-Cause Notice for cancellation of GST Registration of the petitioner on the ground that there was violation of the provisions of Rule 10A read with Rule 21 [d] of the CGST Rules, 2017. By the Show-Cause Notice, the petitioner was directed to furnish a reply to the Show-Cause Notice within seven days from the date of service of the Notice. The petitioner was also directed to appear before the respondent no. 3 on 17.06.2024. The GST Registration of the petitioner was also suspended with effect from 10.06.2024.

4. It is the case of the petitioner that due to uploading of the Show-Cause Notice in the portal and no individual communication, the Show-Cause Notice escaped the notice of the petitioner.

5. Subsequently, on 04.07.2024, the respondent no. 3 passed an Order of cancellation of registration in reference to the Show-Cause Notice dated 10.06.2024. In the Order, it id mentioned that the petitioner did not submit any Reply to the Show-Cause Notice and on the basis of the records available in his office, he was of the opinion that petitioner’s registration under the CGST Act would be liable to be cancelled in view of the violation of the provisions of Rule 10A read with Rule 21 [d] of the CGST Rules, 2017. In the Order, it is mentioned that the effective date of cancellation of the petitioner’s GST registration was from 04.07.2024.

6. Though the petitioner, after the impugned Order of cancellation dated 04.07.2024, made an attempt to furnish her bank details in Form REG-14 in the GST portal, the same could not be uploaded. Thereafter, the petitioner also made an attempt to file an application for revocation of cancellation. But, the portal did not accept the application for revocation on the ground that the period of limitation for filing application of revocation of cancellation of GST registration had already expired.

7. It is in the above backdrop, the petitioner is before this Court by the instant writ petition.

8. Rule 10A of the CGST Rules, 2017 has prescribed that after a certificate of Registration in Form GST REG-06 has been made available on the common portal and a Goods and Tax Identification number has been assigned, the registered person, within a period of thirty days from the date of grant of registration, is required to furnish information with respect to details of bank account on the common portal.

9. Rule 21 [d] of the CGST Rules, 2017 has prescribed that the registration granted to a person is liable to be cancelled, if the said person violates the provision of Rule 10A.

10. The procedure for cancellation of registration on the ground of violation of Rule 10A has been provided in Rule 21A [2A] by providing that where there is a contravention of the provisions of Rule 10A by the registered person, the registration of such person shall be suspended and the said person shall be intimated in Form GST REG-31, electronically or on the common portal or by sending a communication to his email addr