ST Enterprises Vs Commissioner of State GST And VAT (Delhi High Court)
Delhi High Court has instructed the Delhi Goods and Services Tax (DGST) Department to swiftly adjudicate a show cause notice (SCN) for the cancellation of GST registration issued to ST Enterprises. The court has set a one-month deadline for a decision, emphasizing the need for prompt resolution given that the petitioner’s business operations have reportedly come to a standstill due to the registration suspension.
ST Enterprises filed the petition challenging an SCN for GST registration cancellation dated November 21, 2024. Concurrently, the firm’s GST registration was suspended from the same date. The grounds cited for the suspension were based on Rule 21(b) of the GST Rules, alleging that the firm “issues invoice or bill without supply of goods or services or both in violation of the provisions of the Act, or the rules made thereunder.” This allegation stemmed from an alert received via a letter from the Central GST (CGST) Department.
The petitioner informed the court that despite repeated attempts to seek restoration of the GST registration through letters to the department, no response had been received. This lack of communication, coupled with the suspension, was significantly impacting the firm’s ability to conduct business and fulfill work orders.
