Vsv Info Private Limited Vs Assistant Commissioner St and Others (Andhra Pradesh High Court)
Andhra Pradesh High Court heard a case involving VSV Info Private Limited, which challenged the cancellation of its GST registration without being given an opportunity for a personal hearing. The petitioner, engaged in software publishing, consultancy, and supply, had obtained GST registration in Vijayawada in 2019. However, due to the impact of the Covid-19 pandemic and the loss of their accountant, the petitioner was unable to file the required GST returns from May 2019 to June 2022. In response, the authorities issued a show cause notice on 02.02.2023 for failing to file monthly GSTR-1 and GSTR-3B returns for six months, proposing to cancel the GST registration. The notice also suspended the GST registration immediately, preventing the petitioner from accessing the portal to submit returns.
The petitioner argued that the GST registration was cancelled without providing a chance for a personal hearing, violating the principles of natural justice. The petitioner further contended that the cancellation was retroactively dated to 30.06.2022, which was eight months earlier. The government defended the cancellation, citing Section 29(2) of the GST Act, 2017, which allows suspension and cancellation of registration due to non-compliance with return filing requirements. However, the court found that the authorities had acted in contravention of the law by not providing the petitioner with an opportunity to be heard before canceling the registration. The court emphasized that such decisions must adhere to procedural fairness. Therefore, the court set aside the cancellation order and directed the authorities to reconsider the petitioner’s representation for the restoration of the GST registration, ensuring compliance with the principles of natural justice.
