Order Date – 16 February 2023

Facts –

• The Petitioner, M/s. Joy Innovation, is engaged in the business of small creative art works, set works etc.
• Show cause notice dated 25.11.2019 was issued by respondent to the petitioner calling upon the petitioner to show cause as to why its GST registration should not be cancelled on account of non-filing of GST returns.
• The reply filed by the petitioner found to be not satisfactory hence, the respondent passed the order dated 11.12.2019 cancelling the GST registration of the petitioner.

Issue –

• Whether the cancellation of Registration is in order?

Order –

• The Divisional Bench of the Hon’ble High Court observed that the issue raised in this writ petition is no longer res integra. In M/s. Chenna Krishnama Charyulu Karampudi v. Additional Commissioner (Appeals-1)1, which has been followed in subsequent decisions, the Court had remanded the matter back to the file of the primary authority to reconsider and pass appropriate order after giving opportunity of hearing to the petitioner.
• It was held that this is more so because respondent had suo motu cancelled the GST registration of the petitioner on the ground of non-filing of returns and as GST Tribunal has not been constituted under Section 109 of the CGST Act, petitioner would be left without any remedy.
• Hence the matter is remanded back to respondent No.2 for a fresh decision in accordance with law.