📰 𝗔𝗹𝗹𝗮𝗵𝗮𝗯𝗮𝗱 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗖𝗮𝗻𝗰𝗲𝗹𝗹𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗚𝗦𝗧 𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗕𝗼𝗴𝘂𝘀 𝗙𝗶𝗿𝗺 𝗤𝘂𝗮𝘀𝗵𝗲𝗱

📢 The court held, "The cancellation of GST registration, based on assumptions without giving an opportunity for a hearing, violates Section 29(2) of the GST Act."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Star Metal Company vs Additional Commissioner Grade-2 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: Writ Tax No. 397/2023 𝗗𝗮𝘁𝗲: 19-May-2023

𝗜𝘀𝘀𝘂𝗲: On September 27, 2019, a survey was conducted at the business premises of the petitioner, Star Metal Company. The authorities found that the business location was not as disclosed in the GST registration. On December 1, 2020, the GST registration of the firm was cancelled, declaring it "bogus." The petitioner filed for revocation of this cancellation, which was rejected in March 2021. Additionally, a show cause notice was issued in April 2021, despite the rejection of the revocation application. The petitioner challenged these orders, arguing that the process violated Section 29(2) of the GST Act and that no opportunity for a hearing was provided.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Allahabad High Court quashed the cancellation of the GST registration and all subsequent orders, holding that the process was flawed. The Court emphasized that cancellation under Section 29(2) requires specific conditions and an opportunity for a hearing, both of which were ignored in this case. The issuance of the notice in April 2021 after the rejection of the revocation application was also improper.

📜 The Court allowed the writ petition and provided the GST authorities the liberty to issue a fresh notice, adhering to legal requirements under Section 29(2), to be decided on merit without being influenced by earlier observations. Team GSTpanacea 7503031378