J. N. Lighting India LLP Vs Union of India & Ors. (Bombay High Court)
Retrospective GST Registration Cancellation Without Reasons Cannot Sustain Section 63 Best Judgment Assessment; SCN Quashed by Bombay High Court
The petitioner is a manufacturer. It converted from a partnership firm to LLP. During the intervening period; the petitioner paid GST on sales through the old registration. The said registration was sought to be cancelled by the department retrospectively. The application for revocation of such cancellation was also rejected. In the mean time; show cause notice came to be issued under section 63 proposing best judgment assessment treating the petitioner as “unregistered dealer”. Hence; petition came to be filed.
The Hon’ble Bombay High Court set aside the orders and the show cause notices and allowed the petition. It held: (i) GST registration was cancelled without assigning any reasons and issuing unreasoned notice; (ii) follows its earlier judgments in Makesburry India and G B Traders; (iii) quashes show cause notice issued under section 63 of the Act proposing best judgment assessment; (iv) grants liberty to revenue to issue fresh show cause notice within 2 weeks if any reason survives and pass reasoned orders thereupon.
Argued by Adv. Bharat Raichandani i/b UBR Legal
