Section 29 of the CGST Act, 2017 — Cancellation of Registration — The petitioner challenged the Appeal order dated 30.03.2022 rejecting the appeal of the petitioner on the ground of delay as well as the order of cancellation of registration dated 19.09.2019. The counsel for the petitioner submitted that due to certain unavoidable condition the appeal was filed at delayed stage. The Court observed that the appeal has been rejected on the date of its filing by a computer generated order whereby the reason shown is delay in submission of appeal has not been discussed by the appellate authority, nor any opportunity was provided. When the taxing authorities are dealing with the small traders/businessman, they should bear in mind that they are not very well educated, and well versed with the technicalities of law and procedure. The officers of the taxing authorities should be more patient and extend every possible help for facilitation of the business. Cancellation of the registration should be the last resort, as it not only leads to closure of business but also creates unemployment. The court cautioned the officers that when a new taxing regime has been enforced, such drastic step of cancellation of registration should be avoided to the maximum extent, and if a trader or businessman is ready to comply the provisions of the Acts and Rules, the authorities may let of the traders with certain minor penalties. The appellate authority is a quasi judicial authority and acts as a Court, and while dealing with an appeal it should follow the principle of natural justice and before deciding and taking any decision on the appeal at least the assessee or his counsel should be heard.

Held that:- The Hon’ble High Court set aside the order and remitted the matter to the Appellate Authority to decide the appeal afresh after affording due opportunity of hearing to the petitioner.