ATT SYS India Pvt Ltd Vs Commissioner Goods And Services Tax (Delhi High Court)
GST Registration cancelled without granting any hearing and proper reasoning not sustainable
The Hon’ble Delhi High Court in the case of M/s. Att SYS India Pvt. Ltd. Estex Tele Pvt. Ltd. Consortium v. Commissioner of Goods and Service Tax [W.P. (C) 14494/2023 dated November 20, 2023] allowed the writ petition and directed the Revenue Department to restore Petitioner GST Registration thereby holding that, GST Registration cancelled without granting any hearing and proper reasoning is not sustainable.
Facts:
M/s. Att SYS India Pvt. Ltd. Estex Tele Pvt. Ltd. Consortium (“the Petitioner”) is an Association of Person, constituted by ATT SYS India Pvt. Ltd. and Estex Tele Private Limited to execute the contract awarded by Indian Highway Management Company Limited (“the Company”) for conducting traffic surveys on National Highway. The Petitioner was registered under the GST Act in the year 2017.
The Contract awarded in favour of the Petitioner was terminated by the Company. Thereafter, the Company referred the dispute to the Arbitration wherein the Arbitral Tribunal directed the Company to make the payment to the Petitioner. The Petitioner was not engaged in other business, thus was filing Nil returns.
The Petitioner, after receiving the amount stated in the award, was required to discharge GST liability. The Petitioner after examining the portal found that the Petitioner’s GST registration was cancelled vide order dated December 26, 2020 (“the Impugned Order”) by the Revenue Department (“the Respondent”) and therefore, the Petitioner is unable to file GST Returns. The Petitioner has also paid GST in excess of Rs. 14.90 Lakhs.
Issue:
Whether GST Registration cancelled without granting any hearing and proper reasoning is sustainable?
Held:
The Hon’ble Delhi High Court in the case of W.P. (C) 14494/2023 held as under:
