Ram Niwas Vs Commissioner of Central Goods And Services Tax & Anr (Delhi High Court)
In a recent ruling, the Delhi High Court addressed the case of Ram Niwas, proprietor of M/s Maha Kuber Garments, concerning the cancellation of his Goods and Services Tax (GST) registration due to alleged non-existence at the registered business premises. The court found that a temporary suspension of business activities due to health issues does not justify the cancellation of a taxpayer’s GST registration.
Background of the Case
The case arose from a writ petition challenging Show Cause Notices (SCNs) issued on February 6, 2024, and August 7, 2024, alongside the respective orders for cancellation of the taxpayer’s GST registration dated May 25, 2024, and August 27, 2024. M/s Maha Kuber Garments, located in Gandhi Nagar, Delhi, was registered under GST. In light of an inquiry into non-genuine taxpayers, officials from the Anti-Evasion wing of the Central Goods and Services Tax (CGST) visited the premises but reported the business as non-existent.
Following the visit, a SCN was issued to Ram Niwas, prompting him to explain why his GST registration should not be canceled. The notice cited information indicating that the business was non-traceable at its principal place of business. It ordered Ram Niwas to respond within seven days and to appear for a personal hearing on February 12, 2024.
Proceedings and Orders
The cancellation order, issued on May 25, 2024, stated that the GST registration would be canceled retroactively from September 2, 2017. This decision was based on the assertion that the registration was liable to cancellation under Section 29 of the CGST Act, 2017.
