Facts of the Case

The petitioner approached the High Court by filing WPMS No. 2593 of 2022 challenging multiple proceedings relating to cancellation of GST registration and rejection of the request for revocation of such cancellation. The petitioner sought issuance of appropriate writs, including certiorari and mandamus, against the impugned proceedings.

The proceedings challenged by the petitioner included:

  1. Show Cause Notice for cancellation of registration bearing Reference No. ZA050122017786S dated 22.01.2022.
  2. Order for cancellation of registration bearing Reference No. ZA050222035574X dated 28.02.2022.
  3. Order rejecting the application for revocation of cancellation bearing Reference No. ZA050622006783R dated 10.06.2022.
  4. Show Cause Notice for rejection of the application for revocation of cancellation of registration bearing Reference No. ZA050422053617P dated 28.04.2022.
  5. A consequential direction to the respondent authorities to revive the petitioner’s GST registration.

Thus, the substantive controversy concerned the cancellation of GST registration, the unsuccessful attempt to obtain revocation of such cancellation, and the appropriate statutory or administrative remedy available to the petitioner.

Issues Involved

The principal issues arising from the order were:

  1. Whether an appeal under Section 107 of the Uttarakhand GST Act, 2017 would lie to the Commissioner when the Commissioner is not an adjudicating authority.
  2. Whether the petitioner, whose GST registration had been cancelled and whose application for revocation had been rejected, could seek reconsideration of the grievance before the competent Assistant Commissioner, State Tax.
  3. Whether restoration of GST registration could be considered liberally where the petitioner pays the dues, if any, pending under the GST Act.
  4. Whether the competent authority was required to decide such an application through a speaking and reasoned order after granting a reasonable opportunity of hearing.
  5. Whether the controversy was covered by the earlier Division Bench judgment in SPA No. 123 of 2022 dated 20.06.2022.

Petitioner’s Arguments

The learned counsel for the petitioner submitted that the issue stood covered by the Division Bench judgment of the same High Court rendered in SPA No. 123 of 2022 on 20.06.2022.

The petitioner specifically relied upon the proposition stated in that precedent that:

  • the Commissioner is not an adjudicating authority; and
  • consequently, an appeal under Section 107 of the Uttarakhand GST Act, 2017 shall not lie to the Commissioner.

On this basis, the petitioner sought judicial relief against the cancellation proceedings, rejection of the revocation application, and the related show cause notices, together with restoration of the GST registration.

Respondent’s Arguments

The order records the appearance of Mr. Mohit Maulekhi, learned Brief Holder for the respondents. However, the judgment does not separately record any detailed substantive counter-arguments or independent legal submissions made on behalf of the respondents.

Accordingly, no additional respondent argument should be attributed beyond what is expressly contained in the judicial order.

Court Order / Findings

The High Court disposed of the writ petition by granting liberty to the petitioner to approach the competent authority. The operative findings and directions were as follows:

  1. The Court proceeded in view of the legal position relied upon from the Division Bench judgment in SPA No. 123 of 2022 dated 20.06.2022, namely that the Commissioner is not an adjudicating authority and, therefore, an appeal under Section 107 of the Uttarakhand GST Act, 2017 shall not lie to the Commissioner.
  2. The petitioner was granted liberty to file an application before the Assistant Commissioner, State Tax, Pithoragarh, Sector-1 / Respondent No. 1.
  3. Such application was required to be filed within ten days, setting out the petitioner’s grievances.
  4. If the petitioner pays the dues, if any, pending against him under the GST Act, the application for restoration of GST registration may be considered liberally.
  5. If such an application is filed, the competent authority must dispose of it by passing a speaking and reasoned order.
  6. Before deciding the application, the petitioner must be afforded a reasonable opportunity of hearing.
  7. The application must be disposed of within 30 days of its filing.
  8. The pending application also stood disposed of.

The order was passed by Hon’ble S.K. Mishra, J. on 18.10.2022.

Important Clarification

This judgment carries several important procedural clarifications:

First, the order indicates that the appellate remedy under Section 107 must be examined with reference to the statutory status and competence of the authority concerned. The Court recorded the position, based on the Division Bench judgment relied upon, that the Commissioner is not an adjudicating authority and therefore an appeal under Section 107 shall not lie to the Commissioner.

Second, the High Court did not, in the operative portion reproduced in the uploaded judgment, itself directly restore the GST registration. Instead, it granted the petitioner liberty to make an application before the Assistant Commissioner, State Tax, Pithoragarh, Sector-1.

Third, the direction that restoration “may be considered liberally” was linked to the petitioner paying dues, if any, under the GST Act pending against him. Therefore, the judgment should not be read as laying down an unconditional rule of automatic restoration in every cancellation case.

Fourth, the competent authority was expressly required to ensure procedural fairness by providing a reasonable opportunity of hearing and passing a speaking and reasoned order within 30 days.

Fifth, the uploaded judgment refers to SPA No. 123 of 2022 dated 20.06.2022, but does not state the full party names of that related case in the available text. Accordingly, the related precedent should not be assigned invented party names.

Sections / Legal Provisions Involved

Section 107 of the Uttarakhand GST Act, 2017 — The principal statutory provision expressly referred to in the judgment. The controversy concerned the maintainability of an appeal to the Commissioner in light of the finding relied upon by the petitioner that the Commissioner is not an adjudicating authority.

GST Registration Cancellation and Revocation Framework — The factual proceedings involved cancellation of GST registration, an application seeking revocation of cancellation, rejection of that application, and a show cause notice concerning rejection of revocation. However, the uploaded order does not expressly mention specific section numbers governing cancellation or revocation, and therefore no additional statutory section number has been inserted by assumption.

Link to download the order -https://mytaxexpert.co.in/uploads/1783490539_1434compressed.pdf

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