𝐖𝐡𝐚𝐭 𝐢𝐬 𝐡𝐚𝐩𝐩𝐞𝐧𝐢𝐧𝐠 𝐚𝐫𝐨𝐮𝐧𝐝?
The registration numbers i.e. GSTIN allotted to the taxpayers are being 𝐜𝐚𝐧𝐜𝐞𝐥𝐥𝐞𝐝, though for the reasons stated in law, but by way of 𝐯𝐚𝐠𝐮𝐞 𝐦𝐞𝐚𝐧𝐬 like
- date of 𝐩𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐡𝐞𝐚𝐫𝐢𝐧𝐠 is neither mentioned in the show cause notice nor the same is given, or
- even in the absence of reply to SCN or non-conduct of personal hearing, the 𝐨𝐩𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐩𝐨𝐫𝐭𝐢𝐨𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐨𝐫𝐝𝐞𝐫 𝐬𝐭𝐚𝐭𝐞𝐬 that the proper officer has 𝐞𝐱𝐚𝐦𝐢𝐧𝐞𝐝 𝐭𝐡𝐞 𝐫𝐞𝐩𝐥𝐲 to show cause notice and 𝐬𝐮𝐛𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐦𝐚𝐝𝐞 𝐚𝐭 𝐭𝐡𝐞 𝐭𝐢𝐦𝐞 𝐨𝐟 𝐡𝐞𝐚𝐫𝐢𝐧𝐠 and is of the opinion that his registration is liable to be cancelled for the following reason(s). 𝐓𝐡𝐞𝐫𝐞𝐚𝐟𝐭𝐞𝐫, 𝐭𝐡𝐞 𝐫𝐞𝐚𝐬𝐨𝐧 𝐢𝐬 𝐦𝐞𝐧𝐭𝐢𝐨𝐧𝐞𝐝 𝐚𝐬 “𝐫𝐞𝐩𝐥𝐲 𝐧𝐨𝐭 𝐬𝐮𝐛𝐦𝐢𝐭𝐭𝐞𝐝”.
𝐃𝐞𝐜𝐢𝐬𝐢𝐨𝐧
Hon’ble HCs have quashed such kind of notice(s) / order(s) holding the same being vague. [M/s Turret Industrial Security Pvt. Ltd. Versus UOI, Commissioner, CGST & CE, Jamshedpur reported as 2021 (49) G. S. T. L. 239 (Jhar.); M/s Mahadev Trading Company Versus UOI reported as 2020 (10) TMI 431 (Guj.)]
𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧
- Agreeing that the taxpayer fails to file the returns for a continuous period of 6 tax periods but that does not mean that his right to have a proper show cause notice as well as order showing proper application of mind in complete adherence to the principles of natural justice can be circumvented.
- In our opinion, due to financial factors, if the taxes cannot be paid on time, an 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐫𝐞𝐪𝐮𝐞𝐬𝐭𝐢𝐧𝐠 𝐭𝐨 𝐚𝐥𝐥𝐨𝐰 𝐬𝐮𝐜𝐡 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐢𝐧 𝐢𝐧𝐬𝐭𝐚𝐥𝐦𝐞𝐧𝐭𝐬 can be made before Commissioner. Therefore, registration should not be cancelled and opportunity to pay taxes in instalments should be allowed subject to the satisfaction of Commissioner.
GST law 𝐚𝐥𝐥𝐨𝐰𝐬 𝐟𝐢𝐥𝐢𝐧𝐠 𝐨𝐟 𝐫𝐞𝐭𝐮𝐫𝐧 𝐰𝐢𝐭𝐡𝐨𝐮𝐭 𝐩𝐚𝐲𝐦𝐞𝐧𝐭 𝐨𝐟 𝐭𝐚𝐱𝐞𝐬 𝐢𝐧 𝐟𝐮𝐥𝐥 but the 𝐩𝐨𝐫𝐭𝐚𝐥 𝐰𝐨𝐫𝐤𝐬 𝐜𝐨𝐧𝐭𝐫𝐚𝐫𝐲. Therefore, a technical hurdle caused due to non-statutory reasons should not come in way to cancel the registration.