This is a recent ruling regarding, the matter of M/s S.B. Traders. v. The Superintendent [W.P. Nos. 39498 & 39502 of 2022 dated October 28, 2022] dated 28.12.2022 wherein it was held that GST registration could not be cancelled on the basis of the direction of Head Office without assigning any reason by the Hon’ble Telangana High Court
In the instant case, a show because the notice was issued to the petitioner as to why registration should not be cancelled and it was mentioned that registration was obtained by means of fraud, wilful misstatement or suppression of facts. The petitioner filed a reply to show cause notice and on the same day, the order was passed cancelling GST registration on the ground that the same has been cancelled as per directions of Head Office. The petitioner filed a writ petition against the cancellation order.
The Honourable High Court observed that particulars of any fraud, wilful misstatement or suppression of facts had not been mentioned in the notice and there was the absence of any reason to issue show cause notice for cancellation of registration. Moreover, suspending registration on the basis of the direction of the Head Office could not be a reason for the cancellation of GST registration. Thus, the Court held that notice issued and order passed would exhibit complete non-application of mind and therefore, the order cancelling registration was liable to be set aside.
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Source: M/s S.B. Traders. v. The Superintendent [W.P. Nos. 39498 & 39502 of 2022 dated October 28,2022]
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