M/S. Build Tec Infra vs. Assistant Commissioner (St)

Held

The Court held that the order cancelling the petitioner's GST registration certificate was in violation of the principles of natural justice. The Court noted that the petitioner's contention regarding the non-service of notice and show cause notice was not effectively countered by the respondents, who remained silent on this crucial aspect in their counter-affidavit. Consequently, the Court found the impugned order to be unsustainable. The Court set aside the order dated 13.08.2018 and remanded the matter back to the 1st respondent. The 1st respondent was directed to issue a fresh notice to the petitioner within one week, and the petitioner was to submit their explanation within one week thereafter. The 1st respondent was then to pass appropriate orders in accordance with the law, preferably within two weeks of receiving the explanation. No issue was expressly left undecided.

Facts

The petitioner, engaged in the business of Pre-engineering building structures, had its GST registration certificate cancelled by the 1st respondent, the Assistant Commissioner (ST), via an order dated 13.08.2018, effective from 01.08.2017. The petitioner discovered this cancellation when attempting to generate way bills on the GST portal and found they could not download them. The petitioner contends that the cancellation order was passed without issuing any prior notice, either by physical service or by uploading it on the common portal, and that a purported show cause notice was also not served. This, the petitioner argues, violates the principles of natural justice and proviso to Section 29(2) of the Act. The respondents filed a counter but remained silent on whether notice was served prior to the impugned order.

Key Issues

1. Whether the cancellation of the petitioner's GST registration certificate by the 1st respondent on 13.08.2018, with effect from 01.08.2017, is illegal, arbitrary, without jurisdiction, and in violation of the principles of natural justice, specifically concerning the non-service of notice and show cause notice, thereby contravening proviso to Section 29(2) of the CGST/APSGST Act, 2017? Petitioner's Contention: The petitioner argued that the impugned order cancelling their GST registration was passed without providing any notice, either by physical service or by uploading on the GST portal. They further contended that the show cause notice, which was allegedly issued prior to cancellation, was also not served on them. This failure to provide notice and serve the show cause notice constitutes a violation of the principles of natural justice and proviso to Section 29(2) of the Act, rendering the order illegal and liable to be set aside. Respondents' Contention: The respondents filed a counter disputing the averments in the writ petition. However, the judgment notes that the counter was silent on whether any notice was served on the petitioner before passing the impugned order.