The Delhi High Court directed re-adjudication in the case of GST registration cancellation based on allegations of tax evasion, as there was material available to establish the petitioner firm’s involvement in a significant tax evasion scam.
Petitioner impugns order dated 19.09.2023, whereby, the GST registration of the petitioner has been cancelled. Said cancellation order was issued pursuant to a show cause notice for cancellation dated 20.07.2023.
Mr. Sholab Arora representing the petitioner observed that neither the copy of letter of the Additional Commissioner dated 17.07.2023, referred to in the show cause notice was provided, nor any further information was provided. Petitioner was called upon to appear on the date and time notified in the show cause notice, however, the show cause notice does not mention any date, time or venue where the petitioner had to appear
Mr. Rajeev Aggarwal representing the respondent observed that there was material available to establish that the petitioner firm was involved in a big scam of evasion of tax. However, it was considered that the said material has not been provided to the petitioner in support of the show cause notice.
The Coram of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja observed that the impugned order dated 19.09.2023 was set aside. Proper Officer was directed to furnish all material that the Proper Officer may have in support of the show cause notice to the petitioner within one week from today. Thereafter, petitioner shall file a reply thereto within one week. The Proper Officer shall thereafter re-adjudicate the show cause notice within a maximum period of two weeks after giving an opportunity of personal hearing to the petitioner.
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