DS Farbication Vs Commissioner of Central Goods And Services Tax And Others (Delhi High Court)
The Delhi High Court considered a writ petition seeking to quash an order dated 30–31.12.2025 cancelling the Petitioner’s GST registration. The registration had been cancelled on the grounds that the firm was found to be non-existent and had allegedly availed Input Tax Credit of Rs. 49,89,902. Before passing the cancellation order, a Show Cause Notice had been issued to the Petitioner. However, no reply was filed, and the Petitioner also did not avail the opportunity of personal hearing provided by the authorities.
The Petitioner contended that the principles of natural justice had not been complied with and that the impugned order had been passed ex parte.
The High Court examined the record and observed that a Show Cause Notice had been issued and an opportunity to file a reply had been granted, but the Petitioner failed to respond. The Court further noted that an opportunity of personal hearing had also been provided but was not availed. It held that whether the opportunity afforded was sufficient was a question of fact that could more appropriately be examined by the Appellate Authority under the statutory appellate mechanism.
The Petitioner also sought exemption from the statutory pre-deposit requirement. The Court observed that there was no provision under the Central Goods and Services Tax Act, 2017 permitting exemption from the requirement of pre-deposit.
Accordingly, the Court disposed of the writ petition and left it open to the Petitioner to avail the alternative remedy of appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The Petitioner has filed the present writ petition inter alia praying for issuance of a writ of certiorari to quash the Order dated 30-31.12.2025.
2. The brief facts, as borne out from the record, are that the registration of the Petitioner came to be cancelled on the ground that the firm was found to be non-existent and that the Petitioner had allegedly availed Input Tax Credit amounting to Rs. 49,89,902/-. Prior thereto, a Show Cause Notice was issued to the Petitioner; however, no reply thereto was submitted. The Petitioner was also afforded an opportunity of personal hearing, which it failed to avail. Aggrieved thereby, the Petitioner has invoked the writ jurisdiction of this Court, notwithstanding the availability of the statutory remedy of appeal under Section 107 of the Central Goods and Services Tax Act, 2017.
3. Learned counsel appearing for the Petitioner submits that the principles of natural justice have not been complied with and that the impugned order has been passed ex parte.
4. This Court has considered the submissions advanced.
5. A perusal of the impugned order shows that a Show Cause Notice was issued to the Petitioner and an opportunity was granted to file a reply. However, the Petitioner failed to submit any response. It is further evident that an opportunity of personal hearing was also afforded, which the Petitioner did not avail. Whether the opportunity afforded to the Petitioner was sufficient or otherwise is a question of fact, which can more appropriately be examined by the Appellate Authority, a remedy whereof is available to the Petitioner.
6. Learned counsel for the Petitioner further prays for exemption from complying with the statutory requirement of pre-deposit. However, there is no provision under the Act enabling exemption from the requirement of pre-edeposit.
7. In the aforesaid position, the Petitioner if so advised may avail the alternative remedy of appeal.
8. Accordingly, the present petition, along with all pending applications, if any, stands disposed of.
