Order Date – 19 May 2023

Parties: M/S Star Metal Company Vs Additional Commissioner Grade-2 And Another

Facts – 

• The Petitioner, M/S Star Metal Company, was a proprietorship firm. The petitioner claimed to have filed its returns on time and also deposited due taxes.
• On a survey the business place of the firm was not found as disclosed in the registration certificate. Thereafter, the registration of the petitioner was cancelled vide order dated 01.12.2020.
• Thereafter, the petitioner moved a revocation application on 28.01.2021. Thereafter, on 26.04.2021, a show cause notice was issued to the petitioner to show cause as to why the revocation of cancellation of registration may not be rejected.

Issue – 

• Whether the cancellation of GST registration is in order?

Order – 

• The Single Bench of Hon’ble High Court relied on the decision of the High Court in the case of Apparent Marketing Private Limited observed that “Per se, no registration may be cancelled by merely describing the firm that had obtained it, was "bogus". The only contingency to which such expression may relate may be one appearing under Clauses (c) and (d) of Section 29(2) of the Act being where a registered firm does not commence its business within six months of its registration.”
• It was also observed that “Other than that, the term "bogus" may also refer to a satisfaction contemplated by Section 29(2)(c) of the Act where registration may be cancelled if the registered firm has not furnished its return for continuous period of six months. Those conditions have not been shown to exist in this case.”
• Hence it was held that order cannot be sustained and the writ petition is allowed.