Ups Scs India Private Limited Vs Additional Commissioner Grade 2 And Another (Allahabad High Court)
Allahabad High Court held that cancellation of GST registration without following condition prescribed under Rule 21 of GST Rules merely on the bass of reflection of HSN/SAC Code in registration application is not sustainable. Accordingly, order cancelling GST registration quashed.
Facts- The petitioner is a private limited company having separate GST registrations of its two business verticals in India. On 25.8.2023, a show cause notice was issued to the petitioner in Form GST REG -17 under Rule 22 (1) and sub rule (2A) of Rule 21 A of UP GST Rules 2017 proposing to cancel the registration of the petitioner on the premise that the dealer had contravened Section 25 (2) of GST Act 2017 and thereafter the registration of the petitioner was suspended on 25.8.2023.
Notably, the revocation application has been rejected vide order dated 11.11.2023; aggrieved by said order, the petitioner filed an appeal on 9.2.2024, but the same has also been dismissed vide order dated 17.5.2024. By means of present petition, the petitioner is assailing the order dated 17.5.2024.
Conclusion- Held that the record further shows that the appellate authority while rejecting the appeal of the petitioner, has taken altogether new ground to which the petitioner was neither put to any notice nor the petitioner was conferred with the material being used against him. It is a duty of the appellate authority, first to confer the dealer by putting him notice of such documents or materials, which were relied upon while cancelling the registration and after receiving the reply, the order should have been passed.
