Sagar Enterprise And Anr Vs Union of India And 3 Ors. (Gauhati High Court)
Gauhati HC Sets Aside GST Registration Cancellation Because Show Cause Notice Lacked Default Details; Non-Speaking GST Cancellation Orders Cannot Survive Judicial Scrutiny; GST Registration Cannot Be Cancelled Through Cryptic Orders; Failure to Mention Specific Return Default Period Makes GST Notice Defective; Gauhati HC Says Proper Officer Must Pass Reasoned GST Cancellation Orders; Delay in Filing Writ Petition Cannot Validate Statutorily Defective GST Cancellation Order; Gauhati HC Restores GST Cancellation Proceedings Because Order Was Passed Without Application of Mind.
The matter before the Gauhati High Court concerned cancellation of GST registration of the petitioners under the Central Goods and Services Tax Act, 2017. The petitioners challenged the order dated 29 August 2024 by which their GST registration was cancelled pursuant to a Show Cause Notice dated 7 November 2022.
The petitioner, a proprietorship firm carrying on business of construction, supply of building materials, and sale of drugs to District Drug Stores under the National Health Mission, had obtained GST registration with effect from 17 June 2020.
A Show Cause Notice was issued by the Proper Officer on 7 November 2022 alleging that the petitioner had failed to furnish GST returns for a continuous period of six months. The notice required the petitioner to submit a reply within seven working days and also suspended the GST registration with effect from 7 November 2022. Subsequently, the registration was cancelled by order dated 29 August 2024.
