Title: M/S Vidya Coal Depot v. Additional Commissioner Grade (Appeal) Ii And Another
Decided on: 5th October 2023
WRIT TAX No. – 394 of 2023:AHC:192420
Coram: HON’BLE PIYUSH AGRAWAL.
The High court of Allahabad has entertained Writ Tax since G.S.T. Tribunal is not functional in the State of Uttar Pradesh pursuant to the Gazette notification of the Central Government. The petitioner has assailed the order passed by Assistant Commissioner Sector-14 Commercial Tax, Agra cancelling the GST registration of the petitioner under Section 29 (2) of U.P.G.S.T. Act. A mandamus has been sought for restoration of the registration of petitioner.
Facts of the case
Smt. Vidya Devi is the proprietor of the petitioner firm carrying the business of purchase and sale of coal on retail basis for which the GSTIN was granted. Since the petitioner’s turn over was below Rs. 50 lacs, it opted for compounding scheme under Section 9(1) of U.P.G.S.T Act as provided under Section 10 of the Act. On 24.09.2022, a show cause notice was issued by respondent no.2 to cancel the registration of the petitioner with the direction of the TTZ authority and written direction by JC (SIB) B Agra for cancellation of registration of all coal depot. The petitioner replied through registered post on 3.10.2022. Not being satisfied with the reply, the registration of petitioner was cancelled order dated 14.10.2022. Aggrieved by the order, petitioner preferred an appeal, but was rejected by order dated 1.12.2022. Hence the writ petition was filed.
Court Analysis and Decision
The petitioner has not violated Section 29 read with Rule 21 of UPGST Act and Rules framed therein. The registration of the petitioner has been cancelled at the behest of direction issued by JC (SIB) B, Agra as well as the direction of TTZ authority, but neither a copy of such direction has been provided at any stage to the petitioner nor the same was annexed along with the copy of notice issued to the petitioner. It was wrongly mentioned that no reply was submitted by the petitioner. The record reveals that along with the cancellation order, an appendix order was filed in the counter affidavit. It appears that to improve the case of the revenue such appendix has been annexed for the first time by the officer/respondent in the counter affidavit. The Apex Court in the case of Mohinder Singh Gill Vs. The Chief Election Commissioner, held that State authority cannot be permitted to supplement fresh reasons by means of affidavit and the the appendix along with the cancellation order cannot be any aid to the respondent authority.
It is a matter of common knowledge that under the GST Act, A/c book are to be maintained by every person. In absence of such, no violation of rule of UPGST Act, be made out against the petitioner. Once, there is no violation of Section 29 read with rule 21, any action taken for cancellation of registration cannot sustain in the eye of law. Thus, the judge has quashed the orders dated 14.10.2022 & 01.12.2022 and has issued a mandamus to the respondent-authorities No.1 to 3 to reinstate the registration certificate of petitioner immediately with effect from 18.8.2022 with all consequential benefits.
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Written by- K R Bhuvanashri