The Delhi High Court directed to decide revocation of cancelled GST Registration as there was discrepancy in input tax credit (ITC) claim due to cancellation of GST registration with retrospective effect.
The petitioner is essentially aggrieved by the cancellation of its GST registration. The petitioner’s registration was cancelled in terms of an order dated 25.07.2023, which was passed pursuant to a Show Cause Notice (‘SCN’) dated 02.06.2023.
In terms of the SCN dated 02.06.2023, the Proper Officer had proposed to cancel the petitioner’s registration on the ground that it was found to be non-existent at its registered address. The petitioner was called upon to respond to the said notice within a period of seven working days, and also appear before the concerned officer on 09.06.2023. Additionally, the petitioner’s GST registration was suspended with effect from the date of SCN, that is, with effect from 02.06.2023.
It is material to note that prior to the issuance of SCN, the petitioner had made an application dated 08.04.2023 to reflect the change of its principal place of business in the GST records. Pursuant to the said application, the concerned officer had issued a notice dated 20.04.2023, demanding proof of the new address. It had thereafter, proceeded to reject the said application by an order dated 01.05.2023 as the query remained unfulfilled.
According to the petitioner, since it had already changed the principal place of business on 08.04.2023, it was not functioning from the said premises that were visited by the officials on 25.04.2023. The order dated 25.07.2023 cancelling the petitioner’s GST registration is founded on the premise that the petitioner was non-existent at its principal place of business.
A Division Bench of Justices Vibhu Bakhru and Amit Mahajan observed that “Discrepancy in the Input Tax Credit claimed by the petitioner was not the ground on which the petitioner’s GST registration was cancelled. The petitioner claims that it is handicapped in responding to the communication dated 04.09.2003, and reconciling the Input Tax Credit Claim for more than three financial years, in absence of full access to its GST Portal. This access is unavailable as the petitioner’s GST registration has been cancelled with retrospective effect.”
“We consider it apposite to direct that the concerned officer shall decide the petitioner’s application for revocation of the cancellation order after examining all aspects as to whether the petitioner was existent at its principal place of business at the material time” the Court concluded.
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