Order Date: 26 August 2022

Facts-

• The Petitioner, Curil Tradex Pvt. Ltd, has filed this writ petition against the order dated 26.04.2022 passed by Sales Tax Officer. Via this order, respondent has cancelled the registration of the petitioner.
• The cancellation of registration was based on the show cause notice. The respondents/department suspended the registration of the petitioner w.e.f. the date of the issuance of the show cause notice.
• Being aggrieved, the petitioner approached this Court by way of the instant writ petition.
• The petitioner contended that if the proper officer opted for physical verification of the petitioner’s business premises, it could only be carried out in the presence of its authorized representative. In other words, in this eventuality, a prior notice or intimation would have to be served by the proper officer.
• The department contended that even if the communication had been provided to the petitioner, the outcome would be the same, and thus the petitioner’s complaint that natural justice principles had not been followed could not help the petitioner’s cause.

Issue-

• Whether physical verification of business premises for GST registration without issuing a notice is a violation of the principle of natural justice?

Order-

• The Division Bench of Hon’ble High Court observed that the proper officer opted to have the petitioner’s business premises inspected, albeit without the presence of its authorized representative. Had notice of intimation been given, the glitch could have been overcome.
• As per Rule 25, if after the grant of registration, the proper officer is satisfied that physical verification of the place of business of the concerned person is required, the proper officer may get such verification of the business place carried out in the presence of the person. Thereafter, have the verification report along with other documents, including photographs, uploaded on Form GST REG30 on the common portal within 15 working days following the date of verification.
• The court directed the petitioner to file an application for revocation of the order of cancellation within the next 15 days. Once an application is filed, it will be adjudicated by the concerned officer within two weeks of the date of submission. A speaking order will be passed by the concerned officer, a copy of which will be furnished to the petitioner.
• The court held that in case the order passed by the concerned officer is adverse to the interests of the petitioner, the petitioner shall have the liberty to take recourse to an appropriate remedy as per law.