Om Impex Vs State of Maharashtra (Bombay High Court)
Proceedings quashed as reason not provided for rejection of application for voluntary cancellation of GST registration
Bombay High Court held that rejection of the application for voluntary cancellation of registration without providing any reason is contrary to the principles of natural justice. Accordingly, proceedings are liable to be quashed.
Facts- On 28 June 2021, the CGST Authority issued a registration certificate to Respondents in Form GST REG-06. On 9 May 2023, the Petitioner voluntarily applied to cancel the registration in Form GST REG-16. Pursuant to this application, the CGST Authorities cancelled the petitioner’s registration effective 8 May 2023.
On 20 February 2024, the CGST Authority sent an email to the Petitioner stating that the cancellation order dated 9 May 2023 has been revoked pursuant to the orders received from the Appellate Authority / Higher Authority for restoration of the cancellation order. On the same day, an order was passed rejecting the Petitioner’s application for voluntary cancellation of registration dated 9 May 2023.
On 26 February 2024, show cause notice was issued by CGST Authorities to the Petitioner to show cause why the registration should not be cancelled on account of the same having been obtained by means of fraud, wilful misstatement or suppression of facts as per Section 29(2)(e) of the Central Goods and Services Tax Act, 2017. On 8 March 2024, an order came to be passed for the cancellation of registration with retrospective effect from 27 June 2020.
