Golden Enterprises Vs Assistant Commissioner (Madras High Court)
Madras High Court held that cancellation of GST registration on account of non-carrying of any business not justified since business was temporary closed as proprietor had gone abroad during deepavali holidays.
Facts- The petitioner is a registered tax payer under the GST. The respondent issued a show cause notice on 06.11.2024, proposing the cancellation of the registration for the reason that the petitioner has not conducted any business in the declared place of business and that apart the registration stood suspended with effect from 06.11.2024.
Petitioner filed detailed response on 13.11.2024 stating that since the petitioner’s proprietor had gone to abroad during the deepavali holidays and as the business was doing slow at the relevant point of time, they closed the business for 15 days.
But the respondent, without considering the same has passed an order of cancellation on 27.01.2025. Thus, the present writ petition is filed challenging order of cancellation.
Conclusion- Held that in the case on hand, admittedly the petitioner has been paying the tax and filing the returns regularly. Since the petitioner’s premises was closed at the time of inspection, the GST registration of the petitioner was cancelled, without ascertaining the fact whether the petitioner is carrying on the business or not. The reason given by the petitioner is that since the proprietor had gone to abroad during deepavali holidays, the business was closed for 10 days. The respondent without ascertaining the same has erred in coming to the conclusion that the petitioner was not carrying any business in the declared place. Therefore, this Court is of the view that the reason provided by the petitioner appears to be genuine.
