Order Date – 17 February 2023

Parties: M/S Meerarch Construction vs. Union of India and 3 Others.

Facts – 

• The petitioner, M/s Meerarch Construction had not filed the GST returns, and thereafter a show cause notice dated 02.06.2021 was issued, directing the petitioner to furnish a reply to the notice within seven working days from the date of service of the notice.
• The case of the petitioner is that he has not been able to get the show cause notice issued and, therefore, he could not submit the reply within the stipulated time, thus, an order dated 02.06.2021 came to be passed whereby registration of the petitioner was cancelled.
• Against the said order, the petitioner filed an appeal which was dismissed by the appellate authority on the ground of delay on 04.01.2023.

Issue – 

• Whether the appeal dismissed by the appellate authority is acceptable?

Orders – 

• The Court observed that the petitioner has not been heard while passing the order of cancellation.
• The Court relied on the case Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others which held that the impugned order does not assign any reason whatsoever for cancelling registration of the petitioner and is passed only on the ground that reply to the show cause notice is not given. The non-submission of reply to the show cause cannot be a ground for cancellation of the registration.
• Hence, petitioner is permitted to file reply to SCN and the Order is set aside.