The Karnataka High Court has held that the act of the department in suspending the GST registration of the petitioner pending enquiry is too harsh.
The bench of Justice M.I.Arun has observed that the department has initiated an enquiry into certain alleged irregularities committed by the petitioner. The petitioner has replied to the show cause notice.
The bench opined that it would be appropriate for the department to consider the reply of the petitioner and pass suitable orders in accordance with law and the act of respondent in suspending the GST registration of the petitioner pending enquiry would be too harsh on the petitioner as he would not be in the position to conduct his business and the enquiry may take some time.
The petitioner/assessee is a dealer registered under the provisions of the Karnataka Goods and Services Act/Central Goods and Services Act, 2017. The department has issued a show cause notice to the petitioner for cancellation of registration of GST.
The petitioner submitted that pursuant to the show cause notice, he has appeared before the respondent and he has submitted his reply and also gave several representations to the show cause notice showing how he has been regular in payment of GST and has not committed any default and has not fraudulently claimed any input tax credit nor he has violated any provisions of any law.
The assessee contended that instead of considering his reply and passing the appropriate orders, by way of impugned show cause notice with effect from 14.10.2024 itself his GST registration has been suspended and he is not in a position to carry on his business.
The court directed the department to revoke the suspension of the GST registration of the petitioner which has been done as per show cause notice.
Case Details
Case Title: M/S. Haradiya Enterprises Versus Superintendent Of Central Tax
Case No.: Writ Petition No. 33165 Of 2024 (T-Res)
Date: 17/12/2024
Counsel For Petitioner : Jagadishchandra Kamath K.
Counsel For Respondent: Jeevan J.Neeralgi
