Skva Rubber Solution Private Limited Vs Union of India (Bombay High Court)
In Skva Rubber Solution Private Limited Vs Union of India, the Bombay High Court examined the legality of cancellation of the petitioner’s GST registration and rejection of its application for revocation of cancellation. The petitioner, engaged in the business of trading in crumb rubber granulate, had obtained GST registration in Maharashtra on 9 July 2018 and later in Gujarat on 19 July 2023.
According to the petitioner, financial difficulties during FY 2018-19 prevented timely discharge of GST liabilities and filing of returns, resulting in suspension of business operations in Mumbai from February 2020 onwards. A show-cause notice in Form GST REG-17 dated 31 December 2020 was issued suspending the registration and calling for a reply within seven working days. Thereafter, on 2 February 2021, the registration was cancelled retrospectively with effect from 1 May 2019. The petitioner contended that the cancellation order was passed without granting any opportunity of personal hearing and therefore violated principles of natural justice.
To avail benefits under Notification No. 3 of 2023 dated 31 March 2023, the petitioner filed pending returns up to March 2019 and thereafter applied for revocation of cancellation on 30 June 2023 in Form GST REG-21. In the application, the petitioner disclosed GST liability of Rs.2,97,102/- for the period April 2019 to March 2020 and stated that sufficient balance was available in its electronic ledger to discharge the liability.
