Discovery India Service Vs Principal Commissioner of Goods And Service Tax North Delhi (Delhi High Court)
In the case of Discovery India Service vs. Principal Commissioner of Goods and Service Tax North Delhi, the Delhi High Court overturned the GST cancellation order issued on October 16, 2023. The cancellation, which was based on a show cause notice from September 26, 2023, alleging fraudulent GST registration, was found to be flawed due to several procedural irregularities and violations of natural justice. The court noted that the cancellation order failed to address the petitioner’s response or provide the necessary documentation used for the decision, such as inspection reports and photographs. These documents were crucial for the petitioner to contest the cancellation effectively. Additionally, the retrospective nature of the cancellation, effective from September 25, 2022, was not disclosed in the original notice, leaving the petitioner without an opportunity to respond to this aspect. The court’s ruling emphasized that proper procedure and the principles of natural justice must be followed, and ordered the restoration of the petitioner’s GST registration while allowing for the possibility of issuing a new, compliant show cause notice if warranted.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
