No, The Honorable Andhra Pradesh High Court in the case of Raghavaiah Thelapalli v. State of Andhra Pradesh and Ors. [Writ Petition No. 1743 of 2024 dated 07.03.2024] allowed the writ petition and set aside the order cancelling GST registration on the ground that the person was not granted the proper opportunity to file the reply against the Show Cause Notice issued.
The Honorable Andhra Pradesh High Court noted that, through the Petitioner did not file the reply to the SCN, the impugned Order has been passed mechanically, without application of mind and the reason for non-filing of reply to the SCN, i.e. the person handling the GST matter of the Petition firm has left abruptly and the Petitioner was not aware of the issuance of the SCN could be considered as sufficient reason. The Honorable Court opined that the Petitioner is entitled to the opportunity of hearing in consonance with the principles of natural justice.
Author’s Comments
Section 29(2)(c) of the CGST Act provides for the cancellation of registration where the registered person fails to furnish returns for a continuous period of 6 months. The law has specified five explicit delinquencies in Section 29(2) which can lead to cancellation of registration after following the due process laid down in the legislature. The proper officer is permitted to proceed with cancellation and pass a speaking order in REG19 and demand all dues, which extend to:
- Outstanding tax, interest, late fee and penalties due;
- Due under section 29(5) in respect of credits.
- Although Section 169 of the GST Act, 2017 specifies 14 different ways/ modes of serving any decision, order, summons, notice or order communication under the Act, care must be taken by the authorities not to simply pick and choose any option, rather the best possible option must be chose by which it is mostly likely to reach the notice. The notice or any other communication cannot be termed to be served until it has reached the intended notice.
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