Jagdamba Marble Vs Joint Commissioner (Appeals) (Chhattisgarh High Court)
The Chhattisgarh High Court allowed a petition filed by Jagdamba Marble challenging the cancellation of its GST registration. The cancellation was based on findings that the business was non-operational at its registered address, as the company had relocated without updating the GST portal. Although a physical verification confirmed the business’s operations at the new location, the appellate authority upheld the cancellation, citing a “Red Alert Notice” related to alleged fraudulent input tax credit (ITC) transactions. The petitioners argued that the cancellation violated their fundamental rights and natural justice principles, as the issues stemmed from an administrative oversight. The court found procedural lapses in the cancellation and appellate processes and directed the authorities to revoke the GST registration, enabling the petitioner to resume business activities. This judgment underscores the importance of procedural fairness in GST compliance and the necessity for businesses to update their registration details promptly to avoid disruptions.
FULL TEXT OF THE JUDGMENT/ORDER OF CHHATTISGARH HIGH COURT
1. Petitioners have filed this petition under Article 226/227 of the Constitution of India seeking following relief:-
(a) That this Hon’ble Court may kindly be pleased to allow the present writ petition.
(b) That, this Hon’ble Court may kindly be pleased to issue writ/order/direction to respondents thereby holding the impugned orders passed by respondent no.1 and 2 in Annexure P/1 and P/2 as issued to the petitioner as without authority of law and bad in law and/or in violation of fundamental rights and/or in violation of principles of natural justice and quash/set aside the same.
(c) That, this Hon’ble court may kindly be pleased to issue writ/order/direction to respondents to revoke the GST registration of the petitioner.
(d) That, this Hon’ble court may kindly be pleased to issue writ/order/direction to call for records of the case.
(e) That, to issue order/s, direction/s, writ/s or any other relief/s as this Hon’ble Court deems fit and proper considering the facts and circumstances of the present case and in the interest of justice.”
2. Relevant facts for disposal of this petition is that the petitioners herein are engaged in the business of ‘supply of marbles & allied products’ having ‘GSTIN: 22BNOPS6836G1ZL’ under the Chhattisgarh Goods & Services Tax Act, 2017 (for short, ‘CGST Act 2017’). Vide order dated 26/06/2023 (Annexure P-2), GST registration of the petitioner has been cancelled by respondent No.2/Assistant Commissioner stating that they do not doing any business from the specified place, however, petitioners have duly submitted before respondent No.2 that they have shifted their business in the new premises, but could not amend the place of business in the common GST portal, but respondent No.2 did not consider the same and cancelled their GST registration. Thereafter, petitioners have preferred an appeal before respondent No.1/Joint Commissioner seeking revocation of cancellation of GST registration, to which, respondent No.1 has duly conducted a physical verification of new business premises of the petitioners and found that the petitioners are doing the business from new premises, but they did not amend the said details in the GST portal, however, due to “red alert notice” being issued, respondent No.1 has rejected the said appeal vide impugned order dated 28.11.2023 (Annexure P-1). Hence this petition.
