Madras HC quashed the order issued by the Commissioner of Commercial Taxes for cancellation of Petitioner’s registration

Issue

Writ petition is filed before the Madras HC under Article 226 of the Constitution of India, to issue a Writ of Certiorari, calling for the records pertaining to the impugned proceedings of the third respondent in GST DRC-07 in Reference No.ZA330120000122W dated 03.01.2020 and quash the same. 

Facts

• The petitioner has registered themselves on the file of the Assistant Commissioner. The petitioner was filing returns under the Tamil Nadu Value Added Tax Act, 2006 and subsequently, under the GST regime also. 
• The petitioner’s registration was cancelled on 06.09.2018 on the ground of non-filing of returns. The said defect was subsequently revised by the petitioner. 
• The petitioner also remitted GST dues to the tune of Rs.66,781/- together with late fee. The petitioner received notice dated 29.10.2019 in which certain defects have been pointed out.  
• The defect includes sales omission and purchase omission also. It was also proposed to levy tax on service charges paid and discount paid. For the reasons best known to the petitioner, no reply was submitted. Thereafter, the impugned order came to be passed levying tax and penalty on the petitioner. 

Findings

Section 75(4) of the CENTRAL GOODS AND SERVICES TAX ACT, 2017 states that an opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person. 

In this no opportunity was given to the petitioner for the person hearing from the side of the State Tax Officer. 

Judgement

After hearing both the councils Madras HC held that the order impugned in this writ petition is quashed. The matter is remitted to the file of the third respondent to pass orders afresh in accordance with law. This writ petition stands allowed. 

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