Order Date – 09 February 2023

Parties: M/s Rakesh Enterprises Vs The Principal Commissioner Central Goods and Service Tax & Ors.

Facts – 

• The Petitioner, M/s Rakesh Enterprises, was issued with a show cause notice dated 15.12. 2020 alleging that the petitioner had defaulted in filing the returns for more than six months.
• Being aggrieved by the order dated 28.12,2020 whereby the petitioner’s registration under the Central Goods and Services Tax Act, 2017 was cancelled, the appeal has filed.
• The petitioner claimed that they had filed a reply to said notice on 24.12.2020, whereas the respondent states that the case history does not reflect that the petitioner had filed any response to the Show Cause Notice dated 15.12.2020.

Issue –

• Whether the cancellation of registration is in order?

Order –

• The divisional bench of Hon’ble High Court held that order dated 28.12.2020 refers to the petitioner’s response to the Show Cause Notice, it does not indicate as to the contents thereof or reflects any discussion in respect of the petitioner’s explanation.
• it is also relevant to note that there is no dispute that the petitioner has filed its returns, albeit belatedly, and has also paid the tax and penalty in accordance with the Act.
• It is not necessary to examine whether the time period as stipulated under Section 30 of the Act is mandatory in this case. This is because it is apparent that the impugned order dated 28.12.2020, cancelling the petitioner’s registration is unsustainable as it does not consider the petitioner’s response to the Show Cause Notice.
• Hence the appeal is allowed