The action of the respondents i.e. blocking the petitioner’s registration on the portal of the department cannot survive the test of law. The impugned notice has been issued only for cancellation of registration, that too without citing any particular reason.
Section 29 of the CGST Act — Cancellation of Registration –-- The petitioner challenged a communication dated 16th December 2020 calling upon the petitioner to appear for personal hearing why the petitioner’s registration be not cancelled. The petitioner has also questioned the action of the respondents in blocking the petitioner’s registration on the portal of the department. The petitioner did not reply to the said show cause notice within 7 days permitted however replied on or around 1st January, 2021. Thereafter, the respondent has so far not passed any order. The respondent counsel submitted that the petitioner has substantial dues of the department which despite notices he has not paid. The court observed that the impugned notice has been issued only for cancellation of registration, that too without citing any particular reason. Without resorting to the power of suspending the registration, if there is any, the respondent surely cannot block the petitioner’s GST account on the official portal.
Held that:- The Hon’ble High Court quashed the impugned show cause notice on the ground of being vague and imprecise. Further, directed the respondents to unblock the petitioner’s GST account on its official portal.
The action of the respondents i.e. blocking the petitioner’s registration on the portal of the department cannot survive the test of law. The impugned notice has been issued only for cancellation of registration, that too without citing any particular reason.
Section 29 of the CGST Act — Cancellation of Registration –-- The petitioner challenged a communication dated 16th December 2020 calling upon the petitioner to appear for personal hearing why the petitioner’s registration be not cancelled. The petitioner has also questioned the action of the respondents in blocking the petitioner’s registration on the portal of the department. The petitioner did not reply to the said show cause notice within 7 days permitted however replied on or around 1st January, 2021. Thereafter, the respondent has so far not passed any order. The respondent counsel submitted that the petitioner has substantial dues of the department which despite notices he has not paid. The court observed that the impugned notice has been issued only for cancellation of registration, that too without citing any particular reason. Without resorting to the power of suspending the registration, if there is any, the respondent surely cannot block the petitioner’s GST account on the official portal.
Held that:- The Hon’ble High Court quashed the impugned show cause notice on the ground of being vague and imprecise. Further, directed the respondents to unblock the petitioner’s GST account on its official portal.