The Delhi High Court has quashed an order for canceling GST registration of a taxpayer on the ground that the show-cause notice was not intimated to the latter.
The petitioner, FADA Trading Private Limited contended that the show-cause notice, gives no details as to the date and time on which the petitioner’s authorized representative was to present himself for a personal hearing, before the adjudicating authority. It was also claimed that neither the show cause notice dated 02.12.2019, nor the subsequent order canceling the petitioner’s GST registration was received by the petitioner.
Justice Rajiv Shakdher and Justice Poonam A. Bamba granted relief to the petitioner and held that “Consequently, the petitioner’s GST registration will be restored, subject to the respondents, hereafter, taking the next steps in the matter, if otherwise amenable in law.”
“The counsel for the Petitioner, Mr Rai clarified that the reason the petitioner says that it did not receive any intimation about the show cause notice or the order cancelling the petitioner’s GST registration, is on account of the fact that the then directors of the petitioner, at the relevant time, were at cross purposes. A close perusal of the order dated 11.12.2019, whereby the petitioner’s registration was cancelled, shows that, in fact, there was no demand outstanding qua the petitioner,” the Court said.
Quashing the order, the Court held that “In view of the above, the impugned order dated 26.10.2021, passed by the appellate authority, and the order cancelling the petitioner’s GST registration dated 11.12.2019, are set aside. Needless to add, the respondents will restore the petitioner’s GST registration at the earliest, though not later than ten [10] days from the receipt of the receipt of a copy of the judgment.”
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