M/S Bpm Medical Care Private LTD. Lko. Thru. Its Director Mr. Anand Kumar Gaun vs. Union Of INDIA Thru. Secy. Ministry Of Finance, New Delhi And Others

Held

The Court allowed the petition, setting aside both the order of cancellation of GST registration dated 11.02.2022 and the appellate order dated 01.12.2022. The Court reasoned that the petitioner was entitled to the benefit of the order passed in Writ Tax No.145 of 2022. The petitioner was permitted to appear before the respondent authority within three weeks, along with a reply to the show cause notice and certified copies of the present order and the judgment in Writ Tax No.145 of 2022. Upon such appearance, the respondents were directed to pass a fresh order in accordance with the law. The ratio decidendi is that where a petitioner demonstrates entitlement to relief granted in a prior, similar case, and has a plausible explanation for procedural lapses, the High Court can direct reconsideration of the matter.

Facts

The petitioner, M/s Bpm Medical Care Private Ltd., challenged an order dated 01.12.2022 passed by the appellate authority and an order dated 11.02.2022 cancelling its GST registration. The petitioner, engaged in vehicle towing services, failed to file GST returns, which the counsel attributed to the COVID pandemic. A show cause notice was issued on 29.01.2022, requiring a reply within seven working days. The petitioner claims it did not receive the show cause notice and thus could not respond within the stipulated time, leading to the cancellation of its GST registration without stated reasons. The appeal filed against this order was dismissed by the appellate authority solely on the ground of delay.

Key Issues

1. Whether the cancellation of GST registration and the dismissal of appeal on grounds of delay are sustainable in light of the petitioner's claim of non-receipt of the show cause notice and the prevailing COVID pandemic circumstances? The petitioner argued that it was entitled to the benefit of a previous order passed by the High Court in Writ Tax No.145 of 2022 (Technosum India Pvt. Ltd. Lucknow Vs. Union of India and others) dated 26.09.2022, which presumably provided relief in similar circumstances. The petitioner contended that it should receive the same relief as granted in the cited case. The respondent (Union of India and others) did not record any specific arguments in the judgment.