The Patna High Court overturns the order to cancel the GST registration and orders a reconsideration

Fact and issue of the case

The petitioner is aggrieved with the cancellation of registration by Annexure- 2 order dated 11.07.2022. An appeal was filed which is pending before the appellate authority.

We have looked at the order at Annexure- 2, especially since the learned counsel for the petitioner has argued that it is a non-speaking order. We see from the order that there is no reason stated as to why the cancellation was ordered and not even the subject of the notice is referred to in the order.

It is the submission of the learned counsel for the State that the form GST REG-19 has been adopted by the Assessing Officer.

Observation of the court

The impugned order in the instant writ petition also suffers from the very same illegality which has been pointed out by the Division Bench. In such circumstances, we set aside the order at Annexure- 2 and direct reconsideration of the issue.

In this context, we also notice that notification No. 3 of 2023 has been brought in by the Central Government on the recommendations of the G.S.T. Council wherein if the cancellation has been effected for failure to file returns under clause (b) or clause (c) of Sub-section (2) of Section 29, there is a further period allowed up to 30.06.2023, wherein the registered person can apply for invocation of cancellation. This is also subject to the condition that the return should be filed up to the effective date of cancellation of registration and the payment of tax, interest, penalty and late fee in respect of such returns have also been made. The assessee would also be entitled to avail of the said remedy if the cancellation has been effected under clause (b) or clause (c) of Sub-section (2) of Section 29.

The writ petition stands allowed.