Case Law Details
Kundan Impex Vs Principal Commissioner of Department of Trade And Taxes (Delhi High Court)
Introduction: The Delhi High Court recently addressed the case of Kundan Impex Vs Principal Commissioner of Department of Trade And Taxes, where the petitioner challenged a show cause notice (SCN) dated 05.07.2023, leading to the suspension of their GST registration. The court’s decision sheds light on the importance of providing detailed reasons in such notices and the implications for businesses facing registration-related challenges.
Detailed Analysis: The petitioner contested the SCN, arguing that it lacked any specific reasons and only referred to a letter dated 12.06.2023 from the Assistant Commissioner (Okhla Division) GST, South Delhi Commissionerate. The petitioner emphasized that the copy of this letter was not provided, hindering their ability to respond effectively.
Upon issue of notice and with the consent of both parties, the court took up the case for final disposal. The respondent produced the letter dated 12.06.2023 during the proceedings, alleging that Neeraj Enterprises had issued invoices without actual supply of goods or services, passing fraudulent input tax credit to various recipients, including the petitioner.
However, the court noted that the letter did not specify which entry pertained to the petitioner or provide details about the alleged fraudulent transaction. The petitioner, highlighting a six-month halt in business operations due to the registration suspension, sought the cancellation of registration.
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