04/07/2022
Big Breaking News Coming from Uttrakhand High Court
Uttrakhand HC (Division Bench) rules against Single Judge’s dismissal of writ petition, reckoning that for want of GST Registration, assessee is being denied his right to livelihood; “violative of Article 21 of Constitution as right to livelihood springs from the right to life..”
"In the absence of GST registration number, a professional cannot raise a bill…it affects his right to livelihood”
Single bench Judge has earlier rejected Writ 30-9-21
Title: Vinod Kumar vs Commissioner Uttrakhand SGST
Citation: SPECIAL APPEAL NO 123 OF 2022
Dated: 20-Jun-2022"
Compiled by: Abhishek Raja Ram | [email protected] | 9810638155
Facts of the case:
🔸The assesse being a mason/painting professional having GST registration had failed to file his return for a continuous period of 6 months. Consequently, the registration was cancelled. Against the cancellation of registration the assessee filed an appeal before the First Appellate Authority, but the same was dismissed
on the ground of delay.
🔸Thereafter, the assessee filed a writ petition before the Court. However, Single Judge dismissed the writ petition of assessee on the ground of maintainability in view of the fact that there was an alternative and efficacious remedy available to the assessee under section 107 of the UGST/CGST Act.
🔸High Court (Division Bench) made the following observations:
A notice was given on the website which was not sufficient, and a personal notice has to be given before cancellation of the registration.
🔸Therefore, the Court could invoke its jurisdiction under Article 226 of the Constitution and hold that the orders passed by the learned Commissioner can be interfered in a writ jurisdiction.
🔸it is apparent that the law made by the Parliament as well as the Legislature with regard to the appeals is very strict, insofar as, that it does not provide an unlimited jurisdiction on the First Appellate Authority to extend the limitation beyond one month after the expiry of the prescribed limitation.
🔸In such a case, the assessee is put to hardship and is left without remedy.
🔸In such cases, the party concerned may face starvation because of denial of livelihood for want of GST Registration.
🔸In this case, the assessee is a semi-skilled labourer working as a painter doing painting on doors, windows of the houses.
🔸Now-a-days bills for any work executed for a private player or, even for the Government agency, are drawn on-line. In most cases, the payments are made direct to the bank on production of the
bill with the GST registration number. In the absence of GST registration number, a professional cannot raise a bill.
🔸So, if the assessee is denied a GST registration number, it affects his chances of getting employment or executing works. Such denial of registration of GST number, therefore, affects his right to livelihood.
🔸If he is denied his right to livelihood because of the fact that his GST Registration number has been cancelled, and that he has no remedy to appeal, then it shall be violative of Article 21 of the Constitution as right to livelihood springs from the right to life as enshrined in Article 21 of the Constitution of India.
🔸In this case, if we allow the situation so prevailing to continue, then it will amount to violation of Article 21 of the Constitution, and right to life of a citizen of this country.
🔸The writ petition is maintainable, and the learned Single Judge should have acted upon his judicial conscience enriched by judicial experience and practical wisdom and held that the writ petition should be entertained.
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