Violation of Natural Justice: Delhi HC quashes Retrospective GST Registration Cancellation [Read Order]

The Delhi High Court in a recent ruling quashed the Goods and Services Tax ( GST ) cancellation order and restored registration for lack of compliance with natural justice.

In this case, the petitioner M/s Chauhan Construction Co. approached the High Court of Delhi as he was aggrieved by the cancellation of GST registration in terms of the order dated 05.04.202, which was issued after the Show Cause Notice (SCN) dated 26.03.2021.

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The petitioner was ordered to submit a response to SCN within seven working days from the date of service. Furthermore, the petitioner received information that if he failed to avail himself of the opportunity of the personal hearing on the set time, the matter would be determined ex parte. But the SCN failed to state any particular date, time, or even the venue where the petitioner was supposed to attend the personal hearing.

In addition to the aforementioned, the petitioner's GST registration was also suspended in accordance with the SCN, effective 26-03- 2021.

Although the petitioner appealed against the impugned order, the appeal was rejected on stating the ground that he petitioner did not access the portal as his GST was suspended in terms of the SCN on 26.03.2021.

The bench observed that the impugned cancellation order was passed violating the principles of natural justice and thus it is void.

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The Delhi High Court bench further noted that the SCN did not contain any intelligible reason.

The bench directed the respondents to restore the petitioner’s GST.

registration. The bench further directed the petitioner to file his GST returns, which were due within thirty days, and also pay the tax along with interest and penalty.

This the High Court bench comprising of Justice Vibhu Bakhru and Justice Sachin Datta allowed the present petition and set aside the impugned cancellation order and the SCN.

To Read the full text of the Order CLICK HERE

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