Case Law Details
Reliable Enterprises Vs Commissioner Delhi Goods And Service Tax (Delhi High Court)
Introduction: The Delhi High Court recently delivered a significant judgment in the case of Reliable Enterprises vs Commissioner Delhi Goods and Service Tax. The petitioner sought the quashing of a show cause notice dated 24.12.2021 and the subsequent cancellation of their GST registration. The primary ground for cancellation was the alleged unavailability of the principal place of business during a field visit.
Detailed Analysis: The Proper Officer issued the impugned Show Cause Notice proposing the cancellation of GST registration due to the unavailability of the principal place of business during a field visit. The petitioner was granted seven working days to respond, but the order lacked specific details regarding the date and time of the personal hearing. Subsequently, the GST registration was retroactively canceled on 26.03.2022, citing the petitioner’s failure to furnish a reply to the notice.
The petitioner filed an application for revocation on 30.08.2023, contesting the cancellation on the grounds of a violation of Rule 25 of the CGST Rules. Despite a detailed reply on 12.10.2023, the application was rejected on 17.10.2023, reiterating the initial reason for cancellation.
The court observed a failure to address the petitioner’s contention of Rule 25 violation and directed the remand of the matter to the Proper Officer for reconsideration. The petitioner was granted the opportunity to submit additional material within two weeks to establish business activity at the principal place. The concerned officer was instructed to pass a speaking order within two weeks if the application was not accepted.
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