Judgment
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE T.R.RAVI TUESDAY, THE 31ST DAY OF JANUARY 2023 / 11TH MAGHA, 1944 WP(C) NO. 965 OF 2023 PETITIONER:
M/S. DELTA INFRASTRUCTURE AND DEVELOPERS C-5, FOREST LANE, VAZHUTHACAUD, THYCAUD P.O., THIRUVANANTHAPURAM DISTRICT, PIN - 695014 REPRESENTED BY PARTNER THOMAS PHILIP.
BY ADVS.
J.R.PREM NAVAZ SUMEEN S.
IRSHAD K.K.
MUHAMMED SWADIQ SRUTHI S. SEKHAR RESPONDENTS:
1 THE STATE TAX OFFICER COMMERCIAL TAX OFFICE, STATE GST DEPARTMENT, THIRD CIRCLE, KILLIPALAM, THIRUVANANTHAPURAM DISTRICT, PIN - 676505 2 THE JOINT COMMISSIONER COMMERCIAL TAX OFFICE, STATE GST DEPARTMENT, THIRD CIRCLE, KILLIPALAM, THIRUVANANTHAPURAM DISTRICT, PIN - 676505 3 THE JOINT COMMISSIONER (APPEALS), COMMERCIAL TAX OFFICE, STATE GST DEPARTMENT, THIRD CIRCLE, KILLIPALAM, THIRUVANANTHAPURAM DISTRICT, PIN - 676505 DR. THUSHARA JAMES, SR.GOVT. PLEADER.
THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 31.01.2023, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 965 OF 2023 2 T.R. RAVI, J.
-------------------------------------------- W. P. (C). No. 965 of 2023 -------------------------------------------- Dated this the 31st day of January, 2023 JUDGMENT The petitioner, a partnership firm engaged in executing contracts for the Government, has filed this writ petition. The petitioner has a Central GST Registration Number and is aggrieved by Ext.P2 order whereby the said registration is cancelled. By Ext.P1 show cause notice issued in Form GST REG-31, the petitioner was asked to show cause why his registration should not be cancelled. Ext.P1 was followed by Ext.P2 order in Form GST REG-19 cancelling the registration. The petitioner has preferred Ext.P3 appeal against the order of cancellation. The petitioner has approached this Court relying on the judgments rendered by this Court in WPC Nos.28783/2022 and 31348/2022, wherein this Court dealing with similar situation, quashed the orders of cancellation of registration.
2.
Heard the counsel for the petitioner and Dr.Thushara James, Senior Government Pleader for the respondents.
3.
The contention of the petitioner is that Ext.P1 show
WP(C) NO. 965 OF 2023 3 cause notice has not been properly issued and instead of issuing a show cause notice in Form GST REG-17, what is issued is a notice in Form GST REG-31, which is essentially a notice of show cause as to why the registration should not be suspended.
4.
Rule 21A of the CG&ST Rules deals with suspension of registration and Rule 22 deals with cancellation of registration.
Rule 22(1) specifically says that the notice of show cause should be issued in Form GST REG-17. The requirements in Form GST REG- 17 and Form GST REG-31 are different. This Court in WP(C) No.28783/2022 considered a case of similar nature, wherein the petitioner had challenged the order of cancellation of registration.
The facts of the said case would show that as in this case the show notice was issued in Form GST REG-31. This Court relied on the judgments of the Gujarat High Court in Aggarwal Dyeing and Printing V. State of Gujarat (Special Civil Application No.18860/2021) and Sing Traders V. State of Gujarat (Special Civil Application No.6315/2022) and the contentions raised by the Senior Government Pleader were rejected and the cancellation order was quashed. I do not find any reason to take a different view in the case on hand, since I find that the facts are
WP(C) NO. 965 OF 2023 4 very much similar in both the cases.
In the result, this writ petition is allowed. Ext.P2 order is quashed. The quashing of the impugned order of cancellation will not absolve the petitioner of any fiscal liability and they will be required to file all defaulted returns together with tax, late fee, interest, penalty etc. within a period of two weeks from the date on which the registration of the petitioner is restored in compliance with this judgment.
Sd/- T.R. RAVI
JUDGE Pn
WP(C) NO. 965 OF 2023 5 APPENDIX OF WP(C) 965/2023 PETITIONER'S EXHIBITS Exhibit P1 THE TRUE COPY OF THE SHOW CAUSE NOTICE BEARING REFERENCE NUMBER: ZA320622007098W DATED 07.06.2022 ISSUED TO THE PETITIONER ELECTRONICALLY IN FORM GST REG-31 Exhibit P2 TRUE COPY OF THE ORDER DATED 19.07.2022 Exhibit P3 THE TRUE COPY OF THE APPEAL MEMORANDUM FILED BY THE PETITIONER AND PENDING BEFORE THE 3RD RESPONDENT