The court found significant procedural lapses in the cancellation of GST registration, requiring authorities to provide a specific show-cause notice and an opportunity for the petitioner to respond, thereby ensuring adherence to principles of natural justice.

JUDGMENT

Heard Sri. Praveen Kumar, learned counsel for the petitioner, Sri. Gaurav Mahajan, learned counsel for the respondent no.2, Sri. Anant Kumar Tiwari, learned counsel for the Union.

2. Challenge has been raised to the order dated 3.5.2022 passed by the Superintendent, Sector-1, Range-4, CGST Commissionerate, Gautam Budh Nagar. By that order the respondent no.2 has cancelled the petitioner's registration under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as `the Act').

3. At the outset, Sri. Gaurav Mahajan, learned counsel for respondent no.2 has raised a preliminary objection to the maintainability of the present writ petition. He would submit that petitioner has statutory alternative remedy of appeal.

4. However, in view of the facts obtaining in the present case, we are not inclined to sustain the objection thus raised. Then objection has been raised as to laches. We may deal with the same a little later. The matter has been heard and we proceed to dispose of the writ petition at this stage, in view of no dispute as to the conduct of proceedings.

5. Having heard learned counsel for the parties and having perused the records, it remains undisputed that originally the petitioner was granted registration under the Act with respect to the place of business disclosed in that registration. At the same time, on 4.8.2022 the petitioner was issued a show-cause notice seeking to cancel petitioner's registration. It reads as below:-

"Form GST REG-17/31

[See Rule 22(1)/ sub-rule (24) of rule 214]

Reference Number: ZA090822024333Q

Date:04/08/2022

To

Registration Number (GSTIN/Unique ID): 09EUCPK4632N1Z7 Vimal Kumar

Nagar Market. Milak Lak Lachchhi,Gautam Budh Nagar, Gautam Buddha Nagar,Uttar Pradesh, 201203

Show Cause Notice for Cancellation of Registration

Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

1. Non compliance of any specified provisions in the GST Act or the Rules made thereunder as may be prescribed

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.

You are hereby directed to appear before the undersigned on 05/08/2022 at 10:50 AM

If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Please note that your registration stands suspended with effect from 04/08/2022

7. Also by means of the said show-cause notice petitioner's registration was suspended. Perusal of the notice further reveals that the date fixed for the proceedings was 5.8.2022 i.e. the date following the date of issuance of notice.

8. A reply thereto appears to have been received on record on 17.4.2022. However, learned counsel for the petitioner would contend no such reply came to be furnished. It is the further case of the petitioner, no proceeding was conducted over a long period of nine months. Yet, without any further notice, on 3.5.2023 the impugned order was passed and the petitioner's registration cancelled retrospectively. Perusal of the order revels that the petitioner's registration was cancelled for reason of non existence of the principal place of business. For ready reference the contents of the order dated 3.5.2023 are quoted below:-

"Form GST REG-19

[See Rul