Non Mentioning of Name or Designation Officer or Place where Assessee has to Appear in SCN: Delhi HC sets aside Cancelling of GST Registration Retrospectively [Read Order]

A division Bench of the Delhi High Court set aside the cancelling of GST Registration retrospectively as there was non-mentioning of name or designation officer or place where assessee has to appear in the show cause notice ( SCN ).

The Petitioner impugned the show cause notice dated 10.11.2023 whereby the GST registration of the petitioner was suspended with effect from 10.11.2023. Vide show cause notice dated 10.11.2023, petitioner was called upon to show cause as to why the registration be not cancelled for the following reasons:- “Section 29(2)(e)-registration obtained by means of fraud, willful misstatement or suppression of facts”.

The Petitioner had submitted an application seeking cancellation of GST registration on 23.02.2023. Pursuant to the said application for cancellation. Petitioner was a issued show cause notice dated 27.02.2023 inter-alia seeking information of inputs held in stock or inputs contained in semi-finished or finished goods held in stock.

Thereafter a show cause notice dated 10.11.2023 was issued to the petitioner after a gap of 9 months seeking to cancel its registration. Said notification was issued on the ground that “Section 29(2)(e)- registration obtained by means of fraud, willful misstatement or suppression of facts”. The show cause notice required the petitioner to appear before the undersigned i.e. authority issuing the notice. Notice did not give the name or designation the officer or place where the petitioner has to appear.

The counsel for the petitioner submitted that petitioner has shut all business activities. As per the petitioner he on his own found discrepancy in his return and accordingly deposited a sum of Rs. 7, 50,107/-

A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “In view of above facts and circumstances, the order dated 10.11.2023 rejecting application of the petitioner seeking cancellation of its registration is set aside. The GST registration is cancelled with effect from 23.02.2023 i.e. the date when the petitioner first applied for cancellation of its registration. Petitioner shall, however, comply with Section 29 of the Central Goods and Services Tax Act, 2017 and furnish all the details as required by the said provisions.”

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