Case Law Details
Balaji Tilak Metal and Alloys P. Ltd. Vs Principal Commissioner of Department of Trade and Taxes (Delhi High Court)
In the case of Balaji Tilak Metal and Alloys P. Ltd. Vs Principal Commissioner of Department of Trade and Taxes, the Delhi High Court addressed the suspension of GST registration and subsequent investigation by the Anti Evasion Cell. The petitioner contested the suspension and asserted the existence of their business.
The petitioner received a Show Cause Notice proposing the cancellation of its GST registration, citing non-existence and failure to join the investigation. Despite appearing before the Proper Officer and contesting the suspension, the petitioner’s registration remained suspended.
The petitioner argued that they were duly existing and provided a new address, which was not acknowledged by the Anti Evasion Cell. However, the respondents maintained that the suspension was justified due to the petitioner’s alleged failure to cooperate with the investigation.
The Delhi High Court directed the petitioner to appear before the Anti Evasion Cell and the Proper Officer on specific dates, emphasizing the need for a thorough investigation. The authorities were instructed to pass appropriate orders on the suspension within a maximum of two weeks.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Petitioner seeks quashing of Show Cause Notice dated 27.03.2024, whereby the GST registration of the petitioner has been suspended.
2. The Show Cause Notice dated 15.02.2024 was issued to the petitioner proposing to cancel its GST registration. The notice also suspended the GST registration w.e.f. 15.02.2024.
3. Pursuant to the said Show Cause Notice, petitioner appeared before the Proper Officer on 22.02.2024, whereupon the suspension was recalled and petitioner was directed to join the investigation before the Anti Evasion Cell. The investigation was pending before the Anti Evasion Cell on the ground that petitioner was a non-existent firm.
4. The case of the petitioner is that petitioner was duly existing and is carrying on the business.
5. Learned counsel submits that petitioner was found non-existent at the earlier address of the petitioner and the new address had already been uploaded on the GST portal, which was not noticed by the Anti Evasion Cell.
6. Learned counsel for respondents submits that subsequent suspension by Show Cause Notice dated 27.03.2024 has been ordered on the ground that petitioner failed to join investigation before the Anti Evasion Cell. Further it is contended that petitioner also did not satisfy the Proper Officer with regard to the contention of not carrying on any business from the registered address.
7. In view of the above, petitioner is directed to appear before the Anti Evasion Cell on 28.05.2024 at 12 Noon and shall also appear before the Proper Officer on 29.05.2024 at 12 Noon.
8. Thereafter, the said authorities shall pass appropriate orders on the request of the petitioner for recalling the suspension within a maximum period of two weeks.
9. Respective orders shall be communicated to the petitioner immediately on their passing. Needless to state that it would be open to the petitioner to avail of such further remedies as permissible in law in case aggrieved by any order passed by the Proper Officer or the Anti Evasion Cell.
10. All rights and contentions of the parties are reserved.
11. Petition is disposed of in the above terms.
12. A copy of this order be given dasti under the signatures of Court Master.
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