THE HON'BLE THE CHIEF JUSTICE UJJAL BHUYAN
AND
THE HON'BLE SRI JUSTICE C.V.BHASKAR REDDY
W.P.No.39468 of 2022
ORDER: (Per the Hon'ble the Chief Justice Ujjal Bhuyan)
Heard Mr. M.Prashanth Kumar, learned counsel for
the petitioner and Mr. B.Narasimha Sarma, learned
counsel, appearing on behalf of the respondents.
2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of the order dated 24.12.2020 passed by the second respondent cancelling Goods and Services Tax (GST) registration of the petitioner. Petitioner has further assailed legality and correctness of the order-in-appeal dated 13.10.2022 passed by the first respondent dismissing the appeal of the petitioner and confirming the order of cancellation dated 24.12.2020.
3. Petitioner is a company registered under the Companies Act, 1956. It is engaged in the business of 2 providing services of engineering drawings etc. After coming into force of the Central Goods and Services Tax Act, 2017 petitioner applied for and obtained GST registration being GSTIN No.36AAQCS1348L1ZT.
4. On 15.12.2020, second respondent issued a show cause notice to the petitioner to show cause as to why GST registration of the petitioner should not be cancelled for failure to file return continuously for a period of six months. Responding thereto petitioner filed reply on 24.12.2020. Second respondent considered the reply of the petitioner as well as the submissions made at the time of hearing but passed the impugned order cancelling the GST registration of the petitioner on 24.12.2020 itself on the following ground:
"1. Since the tax payer has not responded, outstanding tax liability could not be assessed. However, best judgment process will be initiated."
5. Two things are discernable at this stage. Firstly, petitioner had submitted "reply" on 24.12.2020. On the 3 same day i.e., on 24.12.2020, the impugned order came to be passed. Secondly, learned counsel for the petitioner fairly submits that petitioner actually did not submit any reply to the show cause notice. If that be the position, the order dated 24.12.2020 reflects clear non-application of mind as there could not have been any reference to alleged reply of the petitioner dated 24.12.2020. This aspect of the matter was not considered by the appellate authority i.e., first respondent who simply dismissed the appeal on the ground of limitation.
6. We have been informed that in writ petitions espousing identical cause, this Court had remanded the matters back to the primary authority after setting aside the orders impugned including in W.P.No.27071 of 2022 decided on 27.06.2022.
7. In view of above, we set aside the order of the second respondent dated 24.12.2020 as well as the order of the appellate authority dated 13.10.2022 and remand the matter back to the file of the second respondent to hear 4 the matter afresh. Petitioner may file its reply within 15 days from today whereafter second respondent shall pass an appropriate order after hearing the parties and in accordance with law.
8. In the course of hearing, it would be open to the petitioner to submit all the returns as per the statute.
9. This disposes of the Writ petition.
Miscellaneous applications pending, if any, shall stand closed. However, there shall be no order as to costs.
______________________________________ UJJAL BHUYAN, CJ ______________________________________ C.V.BHASKAR REDDY, J 28.10.2022 MRM