The Delhi High Courtin its recent judgement has held that cancelling GST Registration without considering Assessee’sresponse to Show Cause Notice (SCN)is not valid.
Rakesh Enterprises, the petitioner challenged the orderpassed by the Superintendent where by the petitioner’s registration under the Central Goods and Services Tax Act, 2017 (‘the Act’) was cancelled.
The petitionerresponded to the said Show Cause Notice by filing a reply dated 24.12.2020 wherein it was stated that the same has not been filed along with the petition as the copy of the same is not readily available. She stated that the Advocate who was engaged by the petitioner at the material time has not supplied a copy of the same.
It was evident that the petitioner has filed a response to the Show Cause Notice, as the order dated 28.12.2020 expressly recorded it. There is no statement in the counter affidavit to the effect that the order dated 28.12.2020 suffers from any error as is now sought to contend before this Court. The petitioner belatedly paid the tax and penalty by the Act.
In the case of TVL. Suguna CutpieceCenter v. Appellate Deputy Commissioner (ST) (GST), had also observed that it is not the intention of the authorities to debar and de-recognise assessees from coming back into the Goods and Service Tax (GST) fold. This was in the context of petitions where GST registrations of dealers had been cancelled and they had not availed of the alternate remedy seeking revocation of the cancellation orders within the time prescribed.
A two-member bench comprising Justice VibhuBakhru and Justice Amit Mahajan observed that the impugned order dated 28.12.2020, cancelling the petitioner’s registration is unsustainable as it does not consider the petitioner’s response to the Show Cause Notice.
While allowing the appeal, the Court set aside the impugned order dated 28.12.2020.The respondents are directed to restore the petitioner’s Registration (Registration No. 07ASMPK8600N1Z9).
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