Prakash Kumar Nayak Vs Commissioner CT & GST and another (Orissa High Court)
The Orissa High Court examined the legality of an order dated 19.01.2024 by which the Assistant Commissioner of State Tax, Bhadrak Circle cancelled the petitioner’s GST registration under Section 29(2)(e) of the GST Act, alleging that the registration had been obtained by fraud, wilful misstatement, or suppression of facts. The petitioner had been granted GST registration with effect from 05.09.2023 for his proprietorship business. The cancellation followed an inspection on 21.12.2023, during which the petitioner was not present due to serious health issues. Relying on an adverse post-registration visit report, a show cause notice dated 05.01.2024 was issued, and upon non-response, the registration was cancelled.
The petitioner contended that all required documents, including rent agreement, Aadhaar card, and PAN card, were submitted and verified at the time of registration. His absence during inspection was explained by medical evidence showing prolonged illness and continuous medical supervision. The State argued that cancellation was justified due to non-response to the notice and the adverse visit report.
On examination, the Court found that the petitioner’s medical condition was supported by undisputed documentary evidence. It further observed that the show cause notice merely referred to an “adverse Post GST Registration visit report” without supplying a copy of the report or specifying any concrete allegations of fraud, wilful misstatement, or suppression of facts. The notice was held to be vague and mechanically issued, lacking particulars necessary to enable an effective response.
