In a recent ruling, the Delhi High Court has permitted the submission of relevant documents within one week to prove the functioning of the principal place of business amid the cancellation of GST registration.
The petitioner, Wazid Raza filed a petition seeking directions for revocation of the suspension of their Goods and Services Tax (GST) registration.
The suspension was initiated following a Show Cause Notice (SCN) dated 24.07.2024, wherein the petitioner was called to explain why their GST registration should not be cancelled. The SCN cited the following reasons for proposed cancellation: (i) under Section 29(2)(e) of the GST Act, it appeared that the petitioner had obtained registration by means of fraud, wilful misstatement, or suppression of facts; and (ii) under Rule 21(g), the petitioner allegedly violated provisions of Rule 86B of the GST Rules. Notably, the SCN remarked that during physical verification, the petitioner was found to be non-existent at the declared principal place of business.
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The petitioner responded to the SCN on 01.08.2024 but did not submit any supporting documents to prove that the business was operational from the registered principal place of business. The learned counsel for the respondent highlighted this omission, stating that the petitioner had failed to annex any documents establishing the continued operation of the business at the declared location.
The petitioner’s counsel attached a copy of the reply to the petition but, again, without supporting documentation. In light of these facts, the bench comprising Justice Vibhu Bhakru and Justice Sachin Datta considered it appropriate to grant the petitioner one more opportunity to submit relevant documents. The court allowed the petitioner a period of one week to furnish documents proving that they were indeed functioning from the principal place of business.
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The court directed the respondents to consider the documents and pass an appropriate order after giving the petitioner an opportunity to be heard. With these directions, the petition was disposed of, and any pending applications were also closed.
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