Assessment Order not valid when Petitioner could not file reply due to cancellation of GST Registration

The Hon’ble Kerala High Court in the case of VadakkotChackoo Devassy v. State of Kerala and Others [WP (C) No. 42265 of 2023 dated December 21, 2023] set aside the Assessment Order and remitted the matter back for reconsideration in case where the Assessee could not file the reply due to cancellation of GST Registration and issuance of show cause notice on the next day of notice in GST ASMT-10.

Facts:

VadakkotChackoo Devassy (“the Petitioner”) filed a writ petition against the Assessment Order dated November 3, 2023 (“the Impugned Order”) passed under Section 73 of the Central Goods and Services Tax Act, 2017 (“the CGST Act”).

The Petitioner contended that the Show Cause Notice (“the SCN”) was issued on the next day of issuance of Notice in Form GST ASMT-10 and no official copy of the aforesaid documents were provided to the Petitioner. Also, the Petitioner could not file reply as the Petitioner’s registration has been cancelled before issuance of the SCN.

Issue:

Whether Assessment Order is valid when Petitioner could not file reply due to cancellation of GST Registration?

Held:

The Hon’ble Kerala High Court in the case of WP (C) No. 42265 of 2023 held as under:

• Noted that, the Petitioner was not afforded any time for filing of reply to the notice in GST ASMT-10.
• Further Noted that, the Petitioner GST registration was cancelled before the said notices were uploaded in GST Portal.
• Opined that, in the present case there is a violation of principles of natural justice.
• Held that, the Impugned Order is set aside and the matter is remitted back for reconsideration.

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