F R Trade Links vs. The State Tax Officer
Held
The High Court held that the reasons for cancellation did not fall within the grounds specified under Section 29(2) of the CGST Act. It also found that the proper officer failed to conduct an independent inquiry as per Rule 25, relying solely on an intelligence report despite the petitioner providing supporting documents. Consequently, the cancellation and rejection orders were quashed.
Facts
The petitioner's GST registration was cancelled by the State Tax Officer, and their subsequent application for revocation of cancellation was rejected. The department's action was based on intelligence reports alleging that the petitioner's registered business premises were incomplete, lacked a building number, and no business was being conducted there.
Key Issues
Whether the cancellation of GST registration was valid under the grounds specified in Section 29(2) of the CGST Act, and whether the proper officer followed due procedure under Rule 25 before cancelling the registration and rejecting its revocation.
Sections Cited
Section 29(2), Section 25(3), Rule 25
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR. JUSTICE A.M.BADAR THURSDAY, THE 5TH DAY OF AUGUST 2021 / 14TH SRAVANA, 1943 WP(C) NO. 28917 OF 2020 PETITIONER/S: F R TRADE LINKS,6/580 E, THEKKEMURANJOOR BUILDING, ERATTUPETTA-VAGAMON ROAD, ERATTUPETTA, KOTTAYAM-686121, REPRESENTED BY ITS PROPRIETOR SRI. MOHAMMED RIZWAN RASHEED. BY ADVS. AJI V.DEV SRI.ALAN PRIYADARSHI DEV SHRI.KIRAN RAMACHANDRAN NAIR RESPONDENT/S: 1 THE STATE TAX OFFICER, STATE GOODS AND SERVICES TAX DEPARTMENT, PALA - 686565. 2 THE ASSISTANT STATE TAX OFFICER,SQUAD 2, INTELLIGENCE WING, STATE GOODS AND SERVICES TAX DEPARTMENT, 2ND FLOOR, MINI CIVIL STATION, PALA-686575. 3 GOODS AND SERVICES TAX NETWORK, REPRESENTED BY ITS CHAIRMAN, EAST WING, 4TH FLOOR, WORK MAR-1, AEROCITY, NEW DELHI-110037. 4 THE COMMISSIONER OF STATE TAXES,TAX TOWER, KILLIPALAM, KARAMANA P.O., THIRUVANANTHAPURAM-695002. BY ADV GOVERNMENT PLEADER SMT.M.M.JASMINE , GP, SRI.P.R.SREEJITH,SC,GSTN THIS WRIT PETITION (CIVIL) HAVING COME UP FOR ADMISSION ON 05.08.2021, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:
WP(C) NO. 28917 OF 2020 2 JUDGMENT
Heard both sides.
The petitioner, a registered person,
The judgment continues below.
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