SS Enterprises Vs Principal Commissioner (Delhi High Court)
In SS Enterprises Vs Principal Commissioner, the Delhi High Court ruled on the petitioner’s plea regarding the cancellation of their GST registration. SS Enterprises challenged a Show Cause Notice (SCN) issued on 05.03.2024, leading to the cancellation of their GST registration by an order dated 02.04.2024. The petitioner filed for revocation of the cancellation, but their application was rejected through an SCN issued on 19.04.2024, citing two reasons: the incomplete address of the business’s principal place of operation and significant turnover within two months, paid entirely through Input Tax Credit (ITC). The petitioner failed to respond to these allegations, leading to the dismissal of their application for revocation on 01.05.2024.
The petitioner argued that the original SCN did not provide specific reasons, thereby violating the principles of natural justice. The court agreed that the SCN lacked clarity, as it did not indicate fraud, misstatement, or suppression of facts, which are necessary grounds for cancellation under Section 29(2)(e) of the CGST and DGST Acts. While the court did not quash the cancellation order outright, it set aside the rejection order dated 01.05.2024. The court directed that SS Enterprises be allowed two weeks to respond to the allegations raised in the 19.04.2024 SCN, giving them an opportunity to contest the cancellation in a fair hearing.
