Cylos Consulting Private Limited Vs Union Territory of Chandigarh And Others (Punjab and Haryana High Court)
Punjab and Haryana High Court has set aside the cancellation of GST registration for Cylos Consulting Private Limited, ruling that the action taken by the authorities was unjustified. The petitioner’s GST registration was revoked on March 20, 2023, after a tax inspector, during a site visit, found no one present at the registered office and assumed the business was non-functional. Despite the presence of the firm’s nameplate and regular tax filings, the authorities proceeded with cancellation. The petitioner’s revocation application and subsequent appeal were both rejected, leading to the present writ petition.
The court referred to a similar case, Gupta Enterprises vs. State of Punjab, where it was held that such cancellations can have serious financial implications and should not be based solely on assumptions. The court found that a single unsuccessful inspection did not justify the cancellation, particularly when the business had ongoing transactions and filed regular returns. As a result, the High Court restored the petitioner’s GST registration and directed compliance with legal requirements for future filings. The ruling emphasizes that due process must be followed before revoking business registrations, ensuring fair treatment under GST laws.
