Section 29/30 of the CGST Act, 2017 — Cancellation of Registration — The petitioner challenged Appeal order, whereby the appeal preferred by the petitioner has been rejected. The said appeal was preferred against the order dated 15.07.2020 whereby the application for revocation of the cancellation of the registration was rejected. The court observed that SCN depicts the opaqueness of the allegations. The SCN did not propose to rely upon any report or any inquiry conducted to form the opinion and on what basis was the allegation levelled that the tax payer was found non-functioning; it does not indicate as to when the inspection was carried. A vague SCN without any allegation or proposed evidence is violative of principles of administrative justice. Cancellation of registration is a serious consequence affecting the fundamental rights of carrying business. The petitioner in the ground of appeal had extensively stated and produced evidence to support and contend that the commercial activity was being carried out by the petitioner, however, the same have not been touched upon by the Appellate Authority while deciding the appeal. This case clearly highlights the manner in which the quasi-judicial authorities and the appellate authorities are working under the GST Act. The said authorities while passing the order impugned have miserably failed to act in the light of the spirit of the GST Act.

Held that:- The Hon’ble High Court set aside the orders impugned dated 18.01.2021 and 15.07.2020. The registration of the petitioner shall be renewed forthwith. For the manner in which the petitioner has been harassed since 20.05.2020, the State Government is liable to pay a cost of Rs.50,000/- to the petitioner. The said cost of Rs.50,000/- shall be paid to the petitioner within a period of two months, failing with the petitioner shall be entitled to file a contempt petition.