Mani Blue Metals Vs State Tax Officer (Madras High Court)
Madras HC directs timely conclusion of SCN proceedings for GST Registration cancellation as prolonged suspension of GST registration without conclusion of SCN proceedings violates business rights
The Hon’ble Delhi High Court in Deepak Sharma v. Commissioner Department of Trade and Taxes Govt of NCT Delhi [W.P.(C) 4922 of 2025 dated April 17, 2025], granted relief to the Assessee wherein the Assessee GST registration was prolonged on account of non-conclusion of the SCN proceedings for cancellation of GST registration by directing that the proceedings should be completed within stipulated time and a personal hearing should also be granted to the Assessee, as the Hon’ble High Court opined that the “cancellation of GST registration can completely bring the business of any entity or individual to a standstill”.
Facts: Deepak Sharma (“the Petitioner”) has filed writ petition against SCN dated March 19, 2025 (“the Impugned SCN”) issued, by the Commissioner, Department of Trade and Taxes, Government of NCT of Delhi (“the Respondent”) wherein the SCN was issued for cancellation of GST Registration of the Petitioner. Subsequently, the GST registration was suspended from the date of issuance of SCN.
Issue: Whether the prolonged suspension of GST registration without conclusion of SCN proceedings is valid in law?
