Case Note & Summary
The petitioner, Dee Vee Projects Ltd., a public limited company engaged in infrastructure development, was registered under the erstwhile State Sales Tax Act and deemed registered under the Central Goods and Services Tax Act, 2017 (CGST Act) by virtue of Section 26. In 2020, due to changes in management, the petitioner sought and obtained an amendment to its registration certificate on 18.7.2020. Subsequently, the respondents cancelled the petitioner's GST registration without issuing any show-cause notice. The petitioner challenged this cancellation by way of a writ petition before the Bombay High Court at Nagpur. The court considered the issue of whether cancellation without notice violates principles of natural justice. The petitioner argued that no notice was given before cancellation, while the respondents contended that the cancellation was justified. The court analyzed the provisions of the CGST Act and held that cancellation of registration without a show-cause notice is a serious violation of natural justice. The court set aside the cancellation order and directed the respondents to restore the registration, subject to the petitioner complying with any conditions that may be imposed. The judgment was delivered by a division bench comprising Justice Sunil B. Shukre and Justice Anil S. Kilor on 11.02.2022.
Headnote
A) Constitutional Law - Principles of Natural Justice - Cancellation of Registration - Section 29 of Central Goods and Services Tax Act, 2017 - The petitioner's GST registration was cancelled without any show-cause notice, violating principles of natural justice. The court held that cancellation without notice is unsustainable and set aside the order, directing restoration of registration subject to compliance of conditions. (Paras 1-6) B) Goods and Services Tax - Registration - Deemed Registration - Section 26 of Central Goods and Services Tax Act, 2017 - The petitioner, previously registered under erstwhile State Sales Tax Act, was deemed registered under CGST Act by virtue of Section 26. The court noted that the petitioner had sought and obtained amendment to registration certificate in 2020, indicating active registration. (Paras 3-4)
Issue of Consideration
Whether the cancellation of GST registration of the petitioner without issuance of any show-cause notice is valid in law.
Final Decision
The court allowed the writ petition, set aside the cancellation order, and directed restoration of registration subject to compliance of conditions.
Law Points
- Principles of natural justice
- Show-cause notice mandatory before cancellation of registration
- Section 29 of CGST Act
- 2017
- Section 26 of CGST Act
