The High Court of Delhi has overturned the rejection of the GST registration cancellation application due to procedural irregularities, emphasising the importance of fair opportunity for a personal hearing.
The case revolved around the application filed by M/S Shoppers Home seeking the cancellation of its GST registration. However, the application was summarily dismissed by the authorities on the grounds of discrepancies in the returns and an unsatisfactory reply from the petitioner. Moreover, the petitioner had not attended a personal hearing, which was deemed necessary for adjudication.
The petitioner, represented by Mr. Pranay Jain and Mr. Karan Singh argued that despite uploading all required documents, they did not receive notice for a personal hearing. The lack of adequate notice regarding the requirement for a personal hearing deprived them of the opportunity to present their case effectively and to address discrepancies in returns and provide clarifications, rendering the rejection of their application unjustifiable.
The respondent revenue, Principal Commissioner of Goods and Service Tax, North Delhi represented by Mr. Anurag Ojha, Mr. Kumar Abhishek, Mr. Subham Kumar and Mr. Satyam Parashar argued that the petitioner’s application for GST registration cancellation was rightly rejected due to discrepancies in returns and an unsatisfactory reply. They contended that the petitioner’s non-appearance at the personal hearing justified the dismissal of the application.
The bench found that the notice issued to the petitioner lacked crucial information. The notice, dated 14th February 2024, failed to mention the requirement for a personal hearing or provide details regarding the officer to whom the petitioner was supposed to appear. This omission deprived the petitioner of the opportunity to present its case effectively before the authorities.
The court noted that the petitioner had duly uploaded all necessary documents but had not been afforded the chance to address the discrepancies or provide clarifications during a personal hearing. Consequently, the rejection of the application solely on the grounds of non-appearance at a hearing was deemed unjustifiable.
The bench highlighted the significance of ensuring that administrative procedures are conducted transparently and in accordance with the principles of natural justice. By setting aside the rejection of the GST registration cancellation application, the Delhi High Court upheld the right of individuals and entities to a fair hearing and impartial adjudication process.
In result, the division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja remitted back the matter to the Proper Officer for re-adjudication ensuring that the petitioner is afforded a fair opportunity to present its case and address any concerns raised by the authorities in accordance with the law.
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