In WRIT TAX No.43 of 2023-ALL HC- Allahabad HC comes to aid of assessee by setting aside GST cancellation order in light of proposition that non-submission of reply to SCN can’t be ground for cancellation 
Justice Vivek Chaudhary [23-02-2023]

Read Order:  M/S Agarwal Construction Company Thru. Sole Proprietor Naresh Kumar Agarwal v. Commissioner State Tax And 2 Others 

LE Correspondent

Prayagraj, March 15, 2023: After considering the proposition that the non-submission of reply to the show cause cannot be a ground for cancellation of the registration, the Allahabad High Court has permitted the assessee to appear before the authorities along with the reply to show cause notice in a case where his GST registration was cancelled.

Justice Vivek Chaudhary was considering a petition challenging the order whereby GST registration of the petitioner had been cancelled and the order, whereby the Appeal filed against the cancellation of registration had been dismissed.

The facts of this case were such that the petitioner, sole proprietor of the firm, engaged in the business of civil construction work registered under GST Act had not filed the GST return and thereafter a show cause notice was issued, directing the petitioner to furnish a reply to the notice within seven working days from the date of service of the notice.

The petitioner had set up a case saying that he had not been able to get the show cause notice issued by the respondent and, therefore, he could not submit the reply within the stipulated time and, thus, an order came to be passed whereby registration of the petitioner was cancelled. 

It was submitted from the petitioner’s side that since he had not been heard while passing the order as such the present petitioner was also entitled for the benefit of the order passed by this Court in Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others,Writ Tax No.145 of 2022 wherein it was held that the impugned order does not assign any reason whatsoever for cancelling registration of the petitioner and is passed only on the ground that reply to the show cause notice was not given. 

It was also observed therein that non-submission of reply to the show cause cannot be a ground for cancellation of the registration. 

Considering such an aspect, the Bench held that the petitioner was also entitled for the same relief. 

“The benefit of the order dated 26.9.2022 passed in Writ Tax No.145 of 2022, shall also be made available to the present petitioner”, the Bench said while setting aside the impugned orders.