M/S Modak Dyeing And Printing Company Private Limited vs. State Of Punjab And Another

Facts

The petitioner, M/s Modak Dyeing & Printing Company Pvt. Ltd., filed a writ petition challenging the cancellation of its GST registration by an order dated 28.05.2021. The petitioner also challenged a subsequent order dated 02.08.2021, which rejected its application for revocation of the cancellation. The respondents are the State of Punjab and another authority. The matter came before the High Court of Punjab and Haryana at Chandigarh.

Held

The Court did not decide the merits of the cancellation or revocation orders. Instead, the Additional Advocate General for the respondents informed the Court that the order of cancellation is appealable. He further assured that if the petitioner files an appeal, the Appellate Authority would decide it expeditiously, within one week of filing, after providing an opportunity of hearing and passing a speaking order. Based on this submission, the petitioner sought and was granted permission to withdraw the writ petition to avail the remedy of appeal. Therefore, the Court did not make any finding on the validity of the cancellation or rejection orders.

Key Issues

1. Whether the cancellation of GST registration and the subsequent rejection of revocation application are valid in law? The petitioner argued that the cancellation of registration is a serious matter and sought relief from the Court. The respondents, through the Additional Advocate General, stated that the order of cancellation is appealable. They further submitted that the Appellate Authority would decide any appeal filed by the petitioner in accordance with law, after providing an opportunity of hearing within one week of filing, by passing a speaking order. No specific arguments were recorded for the petitioner regarding the merits of the cancellation or rejection orders, other than seeking relief.