Kanha Shree Steels Vs Assistant Deputy Commissioner CGST (Allahabad High Court)
The Allahabad High Court has examined the question as to whether an appellate authority under Section 107 of the CGST Act, 2017 has the power to remand a matter or direct factual verification after quashing an order cancelling GST registration.
In the present case, the petitioner’s GST registration was cancelled on the grounds that the petitioner was not conducting any business from the disclosed place of business pursuant to a formal enquiry by the Department. Following cancellation, an application filed for revocation was also rejected.
Aggrieved by the same, the petitioner preferred an appeal before the appellate authority. The Appellate authority allowed the appeal holding that the show cause notice and the order cancelling the registration are not meeting the standard. However, such appeal was allowed subject to verification of facts by the jurisdictional Assistant/Deputy Commissioner. This effectively remanded the matter for fresh examination.
The petitioner challenged the remand arguing that once the cancellation order and show cause notice were held unsustainable for lack of reasons, the appellate authority had no jurisdiction to give the department a “second inning.” Reliance was placed on precedent (P.N.C. Construction Co. Ltd. v. State of U.P., 2002 UPTC 262).
