Case Law Details
Samayshristi Enterprises Vs Superintendent (Delhi High Court)
Introduction: The Delhi High Court recently delivered a crucial judgment in the case of Samayshristi Enterprises vs. Superintendent, challenging the cancellation of GST registration. The petitioner contested an order dated 26.10.2023, raising concerns about procedural irregularities and lack of clarity in the show cause notice (SCN).
Detailed Analysis: The impugned order, based on the SCN dated 18.09.2023, cited Section 29(2)(e) regarding registration obtained through fraud, wilful misstatement, or suppression of facts. However, the SCN failed to provide specific details of the alleged violations, rendering it incapable of eliciting a meaningful response. This flaw raised questions about procedural fairness.
Moreover, the impugned order lacked substantive reasoning, merely referencing the SCN. The petitioner’s counsel highlighted a previous show cause notice dated 20.09.2021, citing identical grounds for GST registration cancellation. The petitioner’s registration was initially cancelled on 30.09.2021, leading to an unsuccessful appeal. Subsequently, the petitioner sought revocation, successfully restoring registration on 16.09.2023.
The court acknowledged the merit in the petitioner’s argument – once registration is restored after being cancelled for alleged fraud, misstatement, or suppression, a subsequent cancellation must be based on post-restoration grounds. The court set aside the impugned order, directing the immediate restoration of the petitioner’s GST registration. The decision emphasized that this ruling does not prevent the respondent from taking lawful steps under the statute.
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