Case Law Details
Surya Build Creations Vs Commissioner (Uttarakhand High Court)
In Surya Build Creations Vs Commissioner, the petitioner challenged a show cause notice dated 29.01.2025 and a consequential order dated 17.02.2025 cancelling its GST registration on the ground of filing NIL returns for the last two years. The petitioner contended that such a ground is not contemplated under Section 29(2) of the GST Act, which specifies the circumstances under which registration can be cancelled.
The petitioner relied on a decision of the Andhra Pradesh High Court holding that filing NIL returns is not a valid ground for cancellation. The Court examined Section 29(2) and agreed with this interpretation, observing that cancellation powers must be exercised strictly within the statutory conditions provided. Since filing NIL returns is not included among the specified grounds, the cancellation action lacked legal basis.
Accordingly, the Court held that both the show cause notice and the cancellation order were unsustainable in law and liable to be set aside. The impugned notice and order were quashed, and the writ petition was allowed. Any pending applications were also disposed of.
FULL TEXT OF THE JUDGMENT/ORDER OF UTTARAKHAND HIGH COURT
1. The present petition has been filed for quashing the show cause notice dated 29.01.2025 and the order passed in pursuance thereof dated 17.02.2025 cancelling the registration of the petitioner firm on the ground; “filing NIL return since last two years”.
2. Learned counsel for the petitioner submits that filing of NIL return could not be a ground under the statute for cancelling the registration. He has invited our attention towards Section 29 of GST Act which invests power in the proper officer to cancel the registration. The said power can be exercised only in the circumstances enumerated under Sub Section (2) of Section 29 and which does not contemplate cancelation of the registration on the ground of filing of NIL return.
3. The learned counsel for petitioner has placed reliance on Judgment of Andhra Pradesh High Court in Kali Shanker Enterprises vs. Additional Commissioner, Goods and Service Tax Officer, the Chief Commissioner, Government of Andhra Pradesh, 2024 (1) TMI 430, in support of his submission.
4. We agree with the view taken by the Andhra Pradesh High Court that filing of NIL return is not a ground contemplated under Sub Section (2) of Section 29 of the Act. Consequently, the impugned order as well as show cause notice cannot survive and are accordingly, quashed. Writ petition succeeds and is allowed.
5. Pending application, if any, also stands disposed of.
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