GST Update

 Desk of CA. Praveen Sharma – 963 Series (CAPS) 

BOMBAY HIGH COURT IN THE CASE OF Bi-Chem India Private Limited 

A taxpayer filed a writ petition challenging the suspension of GST registration, a show cause notice, recovery notice, and provisional attachment of bank accounts. The taxpayer argued that these actions were arbitrary and taken without proper procedure or hearing.

During the hearing, the tax department informed the Court that it would review whether proper legal procedure was followed. Later, the department agreed to withdraw the suspension of registration and restore it immediately.

The department also assured the Court that before taking any further action, the taxpayer would be given a proper opportunity of hearing on the show cause notice. Any decision would be taken only after following due process of law.

Regarding the recovery notice, the Court directed that no action should be taken on it until proper procedure is followed and a fresh decision is made after considering the taxpayer’s reply.

Based on these statements, the Court disposed of the case without going into detailed merits.

The Court directed that the GST registration be restored immediately. It also directed that the taxpayer should submit documents within 10 days, after which a hearing should be conducted and a fresh order passed.

GST registration cannot be suspended or recovery initiated without proper procedure and opportunity of hearing.