R S Cattle Feed Mills Th Jameel Choudhary vs. Union Territory Of Jammu And Kashmir Th Commissioner GST And State Taxes And Others

Held

The Court noted that the petitioner had already invoked the statutory remedy of appeal against the order of cancellation of GST registration, and this appeal was still pending adjudication before the Deputy Commissioner (Appeal) II, Jammu. The Court acknowledged the delay in the disposal of the appeal. Given the pendency of the statutory appeal, the Court was not inclined to grant indulgence on merits in the present writ petition. Instead, the Court directed the appellate authority, the Deputy Commissioner (Appeal) II, Jammu, to dispose of the petitioner's pending appeal without further loss of time. The Court expected the adjudication to be completed preferably within three weeks from the date of receipt of a copy of the order by the appellate authority. The appellate authority was to hear the petitioner and pass an appropriate order on merits.

Facts

The petitioner, R S Cattle Feed Mills, had its GST registration cancelled on October 28, 2019, by the State Taxes Officer, Circle-Q, for non-filing of more than six consecutive returns. The petitioner claims to have responded to the show cause notice dated October 18, 2019. The petitioner filed a statutory online appeal on March 29, 2022, before the Deputy Commissioner (Appeal) II, which remained undecided. Subsequently, the petitioner filed a writ petition (WP(C) No. 2474/2022) which was disposed of on February 23, 2023, with liberty to file a detailed representation. This representation was considered and disposed of by the State Tax Officer on March 16, 2023, directing the petitioner to follow up with the Appellate Authority. The present writ petition seeks quashment of the cancellation order.

Key Issues

1. Whether the cancellation of the petitioner's GST registration was valid, considering the petitioner's claim of not being afforded an adequate opportunity of being heard, as per the principles of natural justice? 2. Whether the High Court should entertain a writ petition when a statutory appeal against the order of cancellation is pending before the appellate authority? Petitioner's Arguments: The petitioner contends that its GST registration was cancelled without a proper opportunity of being heard. They rely on the fact that the appeal filed on March 29, 2022, has been pending for an extended period, indicating a lack of timely adjudication by the authorities. Revenue's Arguments: The revenue, through the order of the State Tax Officer dated March 16, 2023, argues that a show cause notice was issued on October 18, 2019, and the petitioner admitted in their representation that they could not file GST returns. The officer concluded that a reasonable opportunity of being heard was provided and that the online portal does not allow the State Taxes Officer to revoke cancellation suo motu. The revenue highlights that the appeal is pending before the Appellate Authority.