Did you Know, GST Officer can not cancel your GST Registration merely on Ground of Principal Place of Business ?
Did you Know, GST Officer can not cancel your GST Registration merely on Ground of Principal Place of Business ?
Read the Case Study for Complete Details
CASE NAME : F R TRADE LINKS V. STATE TAX OFFICER (KERALA HIGH COURT)
About petitioner : Partnership Firm
Issue : GST Registration has been cancelled by the state tax officer.
Fact : Taxpayer’s principal place of business is 1st Floor of three storied partially constructed building On the basis of partially construction Officer has cancelled his registration He has mention in his notice following lines. “As per the intelligence squad report your business place is situated in the first floor of the three storied building which is partially completed with structure only and no building number affixed by the local authority. You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.”
He has given his order which is described below:
ORDER ”1. As per the new registration case verification report submitted by the inspector of this office dated 14/10/2020 and also the report of ASTO, Squad2, Intelligence wing, Kottayam at Pala dated 11.08.2020, it is observed that F R TRADE LINKS, 6/580-E, THEKKEMURANJOOR BUILDING, ERATTUPETTA – VAGAMON ROAD, ERATTUPETTA, Kottayam, Kerala, 686 121 with GSTIN 32CMEPR0466B1ZG is not functioning in the address given in the registration application at the time of registration. They also reported that, the business place is situated in the first floor of the three storied building which is partially completed with structures only. Said business place is an open space in pillars, having no partition walls or shutter. No building number is seen affixed by the local authority and no stock in the business premises. There is only a banner with phone number & GSTIN in the wall of three storied building. In the circumstances your contention against the SCN issued on 29/09/2020 is not acceptable. Hence the registration is canceled U/s.29(2) of the CGST/SGST Act 2017.”
Court Finding :
As per section 29(2) of CGST Act Registration can be cancelled in following situation only:
the proper officer may cancel the registration of a person from suchdate, including any retrospective date, as he may deem fit, where:
- a registered person has contravened such provisions of the Act orthe rules made there under as may be prescribed; or
- a person paying tax under Section 10 has not furnished returns forthree consecutive tax periods; or
- any registered person, other than a person specified in clause (b),has not furnished
- any person who has taken voluntary registration under sub section 3(3) of section 25 has not commenced business within 6 months from the date of registration
- registration has been obtained by means of fraud, willful misstatement or suppression of facts;
on reading of above sections, we found that taxpayer was not violated any provision of law. he has a place in partially constructed building. In which GST Certificate has also pasted Contention of officer that there is no stock at principal place Although there is no violation of provision.
Court Decision : Registration shall be restored.
