M/S Power Tech Solutions Through Proprietor Hamdeep Singh vs. Principal Commissioner, Goods And Service Tax Commissionerrate And Ors
Held
The Court acknowledged the petitioner's contention that the show cause notice lacked clarity regarding the date, time, and place for filing a reply, a requirement under Rule 22(1) of the CGST Rules, 2017. While the petitioner cited the COVID-19 pandemic as a reason for not filing a reply, the Court found that the petitioner could still seek revocation of the cancellation order by demonstrating that they had filed their returns. The Court noted that the Government of India had issued notifications extending the time limit for such applications up to September 30, 2021. Therefore, the Court directed the petitioner to file an application for revocation of the cancellation order within 30 days of receiving the certified copy of the order. If filed within this period, the application would be considered within the limitation period and decided on its merits. The Court did not decide on the validity of the show cause notice itself but provided a procedural remedy.
Facts
The petitioner, M/s Power Tech Solutions, filed a writ petition challenging an order dated June 28, 2020, passed by respondent No. 3, which cancelled their GST registration. The petitioner contended that the show cause notice dated March 6, 2020, was unclear regarding the date, time, and place for filing a reply, which is mandatory under Rule 22(1) of the Central Goods and Services Tax Rules, 2017. The petitioner also stated that they could not file a reply due to the COVID-19 pandemic. The core of the dispute revolved around whether the petitioner had filed their GST returns.
Key Issues
1. Whether the show cause notice dated March 6, 2020, was legally valid and compliant with Rule 22(1) of the Central Goods and Services Tax Rules, 2017, by providing clear details of date, time, and place for filing a reply? 2. Whether the petitioner's inability to file a reply to the show cause notice was justified due to the COVID-19 pandemic? Petitioner's contentions: The petitioner argued that the show cause notice was not clear regarding the date, time, and place for filing a reply, which is a mandatory requirement under Rule 22(1) of the CGST Rules, 2017. They further contended that the COVID-19 pandemic prevented them from filing a reply. The petitioner accepted that the central issue was whether they had filed their returns. Revenue's contentions: The judgment does not record any specific contentions from the revenue or respondents.
Sections Cited
Rule 22(1)
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH 119 CWP-25067-2021 (O&M) Decided on : December 10, 2021 M/s Power Tech Solutions ....Petitioner VS Principal Commissioner and others ....Respondents CORAM: HON'BLE MR. JUSTICE AJAY TEWARI
HON'BLE MR. JUSTICE PANKAJ JAIN Present: Mr. Malkiat Singh, Advocate with Mr. Rajat Turka, Advocate for the petitioner. **** AJAY TEWARI, J.(Oral)
By this petition the petitioner has prayed for issuance of direction for setting aside the impugned order dated 28.6.2020 (Annexure P-3) passed by respondent No.3 whereby the GST Registration No. 03AZBPS1923LIZE issued to the petitioner was cancelled.
The contention of the learned counsel for the petitioner is that the show cause notice dated 6.3.2020 (Annexure P-2) was received to file reply within seven working days. The said show cause notice was not clear regarding date, time and place which is mandatory as per the provisions of law under Rule 22 (1) of Central Goods and Services Tax Rules, 2017 to file reply.
The only ground taken by learned counsel for the petitioner is that no reply could be filed because of COVID-19 pandemic. He has, however, accepted that the
The judgment continues below.
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