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Case Summary: M/S Randhawa Construction Co. Vs. Union of India
Case No.: R/Special
Civil Application No. 22859 of 2022
Date of Order: 07/12/2022
Court Name: High
Court of Gujarat at Ahmedabad
Summary of the Case: M/S
Randhawa Construction Co. challenged the cancellation of its GST registration
and the subsequent rejection of its appeal by the respondent authority due to
the appeal being time-barred.
Facts of the Case:
·
The petitioner, a partnership firm, faced
severe financial difficulties due to the COVID-19 pandemic and internal family
disputes.
·
The petitioner's GST registration was
cancelled for not filing returns for six consecutive months.
·
The petitioner attempted to pay
outstanding GST dues but faced challenges due to financial constraints.
·
An appeal against the cancellation order
was rejected as time-barred.
Submission by Petitioner:
·
The petitioner argued that the
cancellation order was passed without providing a proper opportunity for a
hearing.
·
The petitioner had been trying to arrange
funds to clear GST dues and had made partial payments.
·
The petitioner sought the quashing of the
cancellation order and the reinstatement of its GST registration.
Submission by Respondent:
·
The respondent maintained that the
petitioner's registration was cancelled for not filing returns as required.
·
The petitioner did not utilize the
suspension period to file the necessary returns.
·
The cancellation and subsequent rejection
of the appeal were justified based on the petitioner's non-compliance.
Findings by Court:
·
The court noted the cryptic and
non-detailed nature of the cancellation order.
·
The court emphasized that principles of
natural justice were violated as the petitioner was not given a clear
opportunity to respond to the cancellation notice.
·
The court highlighted the lack of clarity
and specifics in the demand and cancellation order, which led to the
petitioner's grievance.
Conclusion:
The court found the
cancellation order and the handling of the petitioner's appeal to be in
violation of natural justice principles. The case was decided in favor of the
petitioner, emphasizing the need for clear communication and proper adherence
to legal procedures by the respondent authorities.
Disclaimer: All the
Information is based on the notification, circular and order issued by the
Govt. authority and judgement delivered by the court or the
authority information is strictly for educational purposes and on the
basis of our best understanding of laws & not binding on anyone.
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