Order date – 11 April 2023

Parties – Shri Sushant Gupta Vs The Commissioner Central Goods And 2 Others

Facts –

• The petitioner, SHRI SUSHANT GUPTA, has filed a petition challenging the order dated 31.01.2023 and the order dated 20.07.2022 passed by respondent no.2, which cancelled the registration of the petitioner under GST.
• The counsel for the petitioner argues that the order dated 20.07.2022 is arbitrary and illegal as it is based on reasons that were not mentioned in the show cause notice served upon the petitioner.
• Further it argues that the dismissal of the petitioner's appeal on the ground of limitation is unjustified.

Issue –

• Whether the order passed for the cancellation of Petitioner GST registration legal?

Order –

• The Court upon perusal of the show cause notice and the reasons assigned for cancelling the registration, observed that the two are different and distinct which is clearly arbitrary. Even otherwise, the reasons recorded for cancellation are not mentioned in Section 29 of the UPGST Act. Thus, holding that the order dated 20.07.2022 is wholly arbitrary and also in violation of the principles of natural justice and also contrary to the provisions of Section 29 of the Act, the same cannot be sustained. 
• The order dated 20.07.2022 is quashed leaving it open to the respondents to pass a fresh orders, if so advised in accordance with law.