Imagine Marketing Limited Vs Joint Commissioner CGST Appeals II Delhi & Anr. (Delhi High Court)
The Delhi High Court heard a petition filed by Imagine Marketing Limited challenging the cancellation of its GST registration by the Superintendent, Range-56, dated 26th November 2024. The petitioner, the parent company of the audio and wearable brand ‘boAt’, operates from leased premises in Hauz Khas, New Delhi. The company had been leasing the premises since 2019 and, due to downsizing in 2024, was only leasing the second floor at the time of the dispute.
A Show Cause Notice (SCN) for cancellation of registration was issued to the petitioner on 15th October 2024. The SCN cited non-filing of GST returns under Section 39 but did not provide specific reasons. The petitioner filed a detailed reply on 28th October 2024, including rent agreements and returns for the last three months. Despite this, the registration was cancelled with effect from 15th October 2024, citing that the petitioner’s reply was “not considerable” without any substantive reasoning. The cancellation order also required the petitioner to submit pending returns and warned that the cancellation did not absolve the company from tax liabilities accrued prior to the cancellation date.
Subsequently, the petitioner filed an application for revocation of the cancellation. A further SCN dated 26th December 2024 was issued, outlining deficiencies in documentation required for revocation, including bank KYC, ID and address proof, rent agreements, GST reconciliations, invoices, ledgers, and self-declaration for tax payments. The petitioner filed a detailed reply on 6th January 2025, although slightly delayed. This application was dismissed on 8th January 2025 without substantive consideration of the petitioner’s submissions.
