The Delhi High Court quashed the show cause notice issued in violation of Rule 25 of the Central Goods and Services Tax Rules, 2017 (CGST Rules) as there was cancellation of GST registration on that principal place of business not found.
The Proper Officer issued a Show Cause Notice proposing to cancel the petitioner’s, Reliable Enterprises, GST registration on the ground that the principal place of business was not found / available at the time of the field visit. The petitioner was called upon to reply to the impugned SCN within a period of seven working days from the said date.
Additionally, the petitioner was called upon to appear for a personal hearing before the concerned officer on the appointed date and time, but no such date or time was specified. The petitioner’s GST registration was also suspended with effect from 24.12.2021.
The petitioner responded to the said Show Cause Notice by a detailed reply filed on 12.10.2023, stating that the impugned SCN whereby the petitioner’s registration was proposed to be cancelled was in violation of Rule 25 of the Central Goods and Services Tax Rules, 2017. However, the said reply was not accepted and the petitioner’s application seeking revocation of cancellation of its GST registration was rejected.
A Division Bench of Justices Vibhu Bakhru and Amit Mahajan observed that “It is apparent from the above that the petitioner’s contention regarding the impugned SCN being in violation of Rule 25 of the CGST Rules has not been addressed. The petitioner also asserts that it is carrying on the business from its principal place of business and if a proper investigation is carried out, the same would be confirmed.”
“In view of above, we set aside the impugned order dated 17.10.2023 and remand the matter to the Proper Officer to consider the petitioner’s application for revocation of order cancelling its GST registration, afresh. The petitioner is also at liberty to file additional material and documents before the concerned officer to establish that it is functioning from the principal place of business, within a period of two weeks from today” the Court noted.
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