Delhi HC directs to restore GST registration canceled without affording opportunity being heard [Read Order]

In a recent case, the Delhi High Court directed to restore canceled Goods and Service Tax (GST) registration without affording an opportunity to be heard. The petitioner is an Association of Persons, constituted by ATT Sys India Pvt. Ltd. and Estex Tele Private Limited. The petitioner, Att Sys India Pvt Ltd Estex Tele Private Limited Consortium, filed the appeal by praying for a direction to be issued for revoking the order canceling the petitioner’s GST registration.

Vipul Kumar & Ms. Arushi Mishra, Advocates who appeared for the petitioner, argued that the petitioner was established in July 2015 to carry out a contract granted by the Indian Highway Management Company Limited (IHMCL) on October 28, 2014, for performing traffic surveys on National Highways in Zone 4.

It was also submitted by the counsel of the petitioner that, according to the petitioner, the issues started when the IHMCL-awarded contract was terminated. After the aforementioned disputes were submitted to arbitration, the petitioner was granted an award. Thus, in terms of the arbitral award dated 24.05.2023, IHMCL was directed to make payments of ₹5,49,97,760/- to the petitioner.

Therefore, it has been filing Nil returns because it hasn't done any business other than carrying out the contract in question. As a result of receiving money under the provisions of the arbitral ruling, the petitioner must now pay up their GST obligations with regard to the specified sum.

Even though, on examining the portal, it was discovered that the petitioner’s GST registration was canceled and, therefore, the petitioner has been unable to file its returns.

The respondent's counsel, Rajeev Aggarwal, claims that the petitioner received the SCN on November 27, 2020, and that the petitioner's GST registration should be canceled due to the petitioner's "filing zero return for the last six months." Counsel for the petitioner argued that they did not receive the SCN. Even if the respondent's claim that the petitioner received a copy of an SCN is accepted, the SCN makes no mention of a time or date for a personal hearing, so the respondent would not benefit much from it. Thus, the petitioner was not given the opportunity to challenge the SCN at a hearing.

The court during the proceedings noted that the petitioner's GSTIN cancellation reasons are not entered in the designated section. Therefore, there is no justification listed in the SCN for the petitioner's GST registration to be canceled.

After analyzing the facts and arguments of both parties, a division bench of Justice Vibhu Bakhru and Justice Amit Mahajan directed to restore canceled Goods and Service Tax (GST) registration, and the petitioner should also comply with the statutory provisions by filing the returns in accordance with the law.

To Read the full text of the Order CLICK HERE

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