Mrs. Farheen Banu vs. Superintendent Of Central Tax

Held

The Court quashed the cancellation order, finding that the respondent acted in haste and violated principles of natural justice by not providing a further opportunity to produce additional corroborating documents. While not revoking the suspension, the Court directed the respondent to allow the petitioner to submit further documents like E-way Bills, bank statements, and stock registers, and then pass a reasoned order.

Facts

The petitioner's GST registration was suspended retrospectively under Rule 21A and subsequently cancelled by the respondent, despite the High Court having previously quashed an earlier cancellation and restored the matter for reconsideration. The petitioner sought an extension to submit documents, which was denied, leading to the suspension and cancellation, even after a detailed reply with invoices was submitted.

Key Issues

Whether the retrospective suspension and subsequent cancellation of GST registration violated principles of natural justice, especially after a prior High Court order for reconsideration. Whether the respondent provided adequate opportunity to the petitioner to furnish necessary documents to prove the genuineness of transactions.