A P Manufacturing Co Vs Special Commissioner I Appellate Authority & Anr (Delhi High Court)
Delhi High Court has directed the restoration of an appeal filed by M/s A P Manufacturing Co. against the retrospective cancellation of its Goods and Service Tax (GST) registration. The court’s decision, issued on July 18, 2024, mandates that the appeal be heard on its merits, overturning a previous dismissal by the Appellate Authority based on grounds of limitation. The ruling underscores the importance of due process, particularly the service of show cause notices, in administrative proceedings.
The case, heard through hybrid mode under Article 226 and 227 of the Constitution of India, centered on the petitioner’s assertion that it had no prior knowledge of the show cause notice (SCN) that initiated the GST registration cancellation proceedings. The petitioner’s GST registration was cancelled retrospectively from July 1, 2017, via a Show Cause Notice dated May 10, 2022, which was subsequently affirmed by a final order dated June 5, 2022, issued by the Sales Tax Officer Class II/AVATO, Ward 62.
According to the petitioner, it did not participate in these initial proceedings. An appeal was subsequently filed before the Appellate Authority on May 21, 2024, nearly two years after the cancellation order. This appeal was, however, dismissed on July 18, 2024, by the Office of the Appellate Authority (Delhi GST)/Special Commissioner-I, primarily on the ground that it was barred by limitation.
