Rakhe Achi Vs Union of India (Gauhati High Court)
The petitioner filed a writ petition under Article 226 of the Constitution of India challenging the order dated 27.05.2023 cancelling his GST registration under the Central Goods and Services Tax (CGST) Act, 2017. The challenge was based on the grounds that the cancellation was arbitrary and that the Proper Officer had passed the order without due application of mind.
Background of the case: The petitioner, a sole proprietor carrying on business in stationery, book stalls, and government supply contracts, had obtained GST registration with effect from 27.12.2019. On 16.01.2023, the Proper Officer issued a show cause notice proposing cancellation of the registration on the ground that the petitioner had failed to furnish returns under Section 39 of the CGST Act for a continuous period of six months. The notice required a reply within thirty working days, fixed a date for personal hearing, and also suspended the registration with effect from 16.01.2023. Subsequently, by an order dated 27.05.2023, the GST registration was cancelled retrospectively with effect from 15.01.2023.
Petitioner’s submissions: The petitioner stated that the show cause notice uploaded on the GST portal escaped his notice and no manual notice was served. By the time he became aware of the proceedings, the cancellation order had already been uploaded. He submitted that he could neither apply for revocation nor file a statutory appeal because the prescribed limitation periods had expired. The petitioner further explained that health issues and a severe decline in business had prevented him from filing GST returns from January 2022 onwards. He also contended that the cancellation order issued in Form GST REG-19 was not a speaking order because it assigned no reasons for cancelling the registration.
