GST – Allahabad High Court: Issue of cancellation of registration number due to not existing at the principal place of business – Held that the first Appellate Authority once it had taken note about the rent agreement, should have taken into consideration that the place of business of the Assessee has changed and an opportunity should have been given to the Assessee – Appeal remanded back [Order attached]
Order Date – 09 January 2023
Parties: M/S Sharp Print Ways Vs State Of U P And 2 Others
- The Petitioner, M/s Sharp Print Ways, was issued with a show cause notice dated 10.02.2021 petitioner on the ground that he was not functioning/not existing at the principal place of business. The notice remained unreplied and the cancellation order was passed.
- It was further alleged that the petitioner has changed and the rent agreement was for 11 months. No intimation was given to the Department about the change of place of business.
- Whether the cancellation of registration is in order?
- The Hon’ble High Court held that the order passed by first Appellate Authority is a cryptic order and the cancellation of registration of GST has a ramification effect on the business of the petitioner.
- The first Appellate Authority once it had taken note about the rent agreement, should have taken into consideration that the place of business of the Assessee has changed and an opportunity should have been given to the Assessee to place all material before it and the authority should have recorded findings before rejecting the appeal confirming the order of cancellation of registration.
- The matter is remitted back to the Appellate Authority to reconsider the appeal.