Order Date – 07 December 2022

Facts – 

• The Petitioner, M/s. Randhawa Construction Co. was issued with a show cause notice dated 15.11.2021 stating that GST registration is liable to be cancelled for the reasons that “any taxpayer other than composition taxpayer has not filed return for a continuous period of six months’.
• The Registration was cancelled on 09.12.2021 without giving opportunity to be heard, though there was no specification of the amount in order of 9.12.2021, the petitioner discharged its obligations of tax, more than what is payable. 

Issue – 

• Whether the cancellation of GST Registration is in order?

Order – 

• The Hon’ble High Court observed that till date there is no clarity with regard to the demand raised by the State in wake of the failure on the part of the petitioner concerned to file the GSTR-3B.
• High Court was inclined to send a message to the respondents loud and clear by allowing this petition in half a line “Breach of violation of principle of natural justice and hence petition succeeds”.
• It was also held that the respondents has not been followed the order passed by this Court in Aggarwal Dyeing and Printing Works v. State of Gujarat [2022] 137 taxmann.com 332. In the instant case also not only the civil but the penal consequence pursuant to the impugned order of cancellation of certificate of registration, the petitioner would be liable.
• Hence the petition is allowed on the ground of principle of natural justice. Set aside the show cause notice and the order of cancellation of registration.