Ottimo Visuals Vs Commissioner of GST (Delhi High Court)
The Delhi High Court has set aside the GST registration cancellation of Ottimo Visuals, citing multiple procedural deficiencies by the tax authorities. The court found that the show cause notices issued to the petitioner were flawed and that the subsequent orders did not consider the petitioner’s responses or explanations. The decision emphasizes the importance of providing clear and specific reasons in show cause notices and following due process before canceling a taxpayer’s registration.
The case began when the tax authorities issued a show cause notice on July 7, 2022, to Ottimo Visuals, proposing to cancel its GST registration. The reason provided was a vague “Non compliance of any specified provisions in the GST Act or the Rules made thereunder.” The petitioner did not file a reply or appear for a personal hearing. Consequently, the proper officer issued a cancellation order on August 18, 2022, stating that the firm was “non-existent at their registered principal place of business on physical verification.” This order also canceled the registration retrospectively from July 2, 2017.
The petitioner, however, stated that it had moved its business premises in July 2021 after its previous location was demolished by Northern Railways. The company filed an application for revocation of the cancellation on September 12, 2022, and submitted supporting documents like an Aadhaar card, a PAN card, an electricity bill, and a No Objection Certificate (NOC) from the landlord. In response, the tax officer issued a second show cause notice on September 23, 2022, proposing to reject the revocation application. This notice was also cryptic, stating the reason as “Any Supporting Document – Document Upload – Document not legible.”
