Section 29 of the CGST Act, 2017 – Cancellation of Registration –- The intra-court appeal is filed against an order dated 22.08.2022. The writ petition is still pending before the learned Single Bench and the direction to file affidavits has been issued. The appellant is aggrieved by non-granting of any interim order pending disposal of the writ petition. The petitioner challenged SCN for cancellation of registration, on the ground that there is no final order of adjudication passed by the competent authority. The court observed that suspension of a license of a dealer will be counterproductive and would work against the interest the revenue. This would ultimately impact the recovery of taxes. Therefore, the respondent department has to take a pragmatic view in the matter because a taxpayer is not to be treated as a person hostile to the department. Further, it is not clear as to why the authorities did not proceed further pursuant to the summons.

Held that:- The Hon’ble High Court directed that suspension of the appellant’s registration should be revoked forthwith and directed the appropriate authority to issue SCN within a time frame and take up the adjudication proceeding. We are not here to advise the respondents as to how they have to act. It is open to them to proceed in accordance with law in the event tax has not been remitted by a dealer at the appropriate rate or there has been escapement of assessment or under assessment.