A Division Bench of the Patna High Court (HC)restored GST Registration on non-consideration of response to Show Cause Notice (SCN) and delay amidst covid.
The petitioner, M/s Kala Coke and Chemicals Pvt Ltd, approached the Court for the issuance of consequential writ order for quashing of the order passed by the Additional Commissioner, State Tax (Appeals) wherein the appeal was dismissed for revocation of cancellation of GST Registration.
The petitioner also requested the Court for the issuance of writ/order for quashing of the ex-parte order passed by the Joint Commissioner of State Tax where in the GST Registration of the petitioner under the GST Act, 2017 has been cancelled without giving due concern to the petitioner’s contentions.
The Joint Commissioner of State Taxes, cancelled the petitioner’s GST Registration under theprovision of Section 29 of the Bihar Goods and Services Tax Act, 2017. Prior thereto, no notice to show cause was issued to which the petitioner could respond.
The Court comprising Chief Justice Sanjay Karol and Justice ParthaSarthyanalysed in detail the facts and circumstances of the case. The Court noted that with the passing of the said order, petitioner is liable to both civil and penal consequences and that the Authority ought to have at least referred to the contents of the show cause and the response thereto, which was not done.
The Bench opined that the order is not only the order is nonspeaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences.
The Bench further noted that the petitioner had applied for registration which request was favourably considered by the Authorities under the Act with a specific registration number allotted to the petitioner. After Covid-19 Pandemic, petitioner’s firm started work. In the peculiar facts and circumstances, the authority ought to have condoned the delay which unfortunately was not done, despite the petitioner having made a fervent request for condonation of delay in accepting the return, preventing cancellation of GST Registration.
Quashing the order, the Court observed that “The petitioner’s registration restored, with a further direction to the Commissioner, Department of State Taxes, Government of Bihar, Patna to finalize the petitioner’s assessment and/or pass appropriate orders, in accordance with law.”
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