Can GST registration be canceled due to a mistake of counsel?

GST registration

Case Title

Dilip Kumar vs State of Gujarat

Court

Gujarat High Court

Honorable Judges

Justice J.B Pardiwala and Justice Nisha M Thakore

Citation

2022 (3) GSTPanacea 311 HC Gujarat

 R/SPECIAL CIVIL APPLICATION NO. 4340 of 2022

Judgement Date

23-March-2022

Council for Petitioner

Mr. Uchit N Seth

Council for Respondent

Mr. Utkarsh Sharma

In Favour of

Petitioner

Section

Section 29 of the CGST Act,2017

GST registration

The Gujarat High Court, Ahmedabad bench of Justices J.B Pardiwala and Nisha M Thakore, has held that for a mistake said to have been committed by the Chartered Accountant, the dealer under the Act should not be made to pay a very heavy price like cancellation of the registration itself.

GST registration

FACTS OF THE CASE

The consultant of the petitioners wanted to cancel the registration of the HUF. However, inadvertently, the consultant instead of inserting the registration number of HUF inserted the registration number of the proprietorship.

As a result, the GST registration of the proprietorship got cancelled. Despite the fact the GST registration got cancelled, the returns filed were accepted.

GST registration

COURT HELD

The court after taking note of the materials on record stated that notices under The Hon’ble High Court after considering the submissions, facts of the case and taking note of its interim order dated 03.2022 observed that the proprietorship registration under GST got cancelled due to an inadvertent mistake committed by the consultant.

The Hon’ble Court observing as above, directed the respondent to immediately look in to the matter and make sure the order cancelling the registration is recalled and the original registration under GST of the petitioner is restored.Further the Hon’ble Court held that for a mistake of consultant, the dealer under the act should not be made to pay such a heavy price like ‘cancellation of registration’

It was further directed by the Hon’ble Court to provide the copy of the order to the Ld. AGPs’ appearing on behalf of the respondents to co-ordinate with the concerned authority and to convey it to recall the cancellation order and restore the original registration.The Hon’ble High Court disposed of the writ application in the above terms.

GST registration

ANALYSIS OF THE JUDGEMENT

From the above order we can analyse that GST registration cannot be cancelled due to mistake of counsel.

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Dilip Kumar

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Gujarat High Court