M/S. Suvan Engineering Solutions ... vs The Commissioner Appealsii
2022 Latest Caselaw 5427 Tel

         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

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

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

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