In a recent case before Delhi High Court, the order issued canceling the petitioner’s Goods and Services Tax ( GST ) registration was set aside for being violative of natural justice principles and for lacking specific details of cancellation.
The petitioner, Nutech Appliances represented by Nitin Gulati, filed a petition impugning an order that canceled the petitioner’s Goods and Services Tax ( GST ) registration with retrospective effect.
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The impugned order was issued pursuant to the Show Cause Notice ( SCN ). The petitioner was called upon to reply to the SCN within 7 working days from the date of the service of the SCN
( 25.04.2024 ) and was also directed to appear before the proper officer.
The petitioner applied for revocation of the GST registration and also sought condonation of delay in filing the same. The proper officer condoned the delay in filing the application by order and after the examination of application the same was rejected.
Thereafter, the petitioner’s application seeking revocation of the cancellation of the GST registration was rejected by order.
The petitioner’s counsel represented by Advocate Nitin Gulati and Advocate Reena Gulati, stated that he has no objection in submitting KYC documents as done before. However he did not receive any notice in respect of any other proceedings and the requirement to obtain a No Objection Certificate ( NOC ) was not supported by any statutory provision.
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The SCN did not specify a comprehensible reason for cancellation of petitioner’s GST registration. Although the registration was stated to be obtained through fraud and wilful suppression of facts, no particulars were set out in this regard.
The Division Bench of Delhi HIgh Court comprising Justice Vibhu Bakhru and Justice Sachin Datta observed that the impugned order and SCN lacked specific details and has hence failed to elicit meaningful response.
Therefore the impugned order and the SCN was set aside.
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