Scope Promoters P. Ltd Vs Commissioner of Central Goods And Services Tax Delhi & Anr. (Delhi High Court)
In the case of Scope Promoters P. Ltd Vs Commissioner of Central Goods and Services Tax Delhi & Anr., the Delhi High Court addressed the issue of the cancellation of the petitioner’s GST registration. The petitioner, a hotel owner, faced cancellation of its GST registration following a Show Cause Notice (SCN) issued in November 2023, which merely stated “initiation of cancellation of GST registration” without providing any substantive reason. The petitioner responded, explaining that a new management team had led to a failure in providing correct information during an official visit. Despite this explanation, the GST registration was cancelled retroactively from July 1, 2017, and subsequent appeals were dismissed on procedural grounds. The High Court found the SCN and the cancellation order to be unreasoned and set them aside. The court ordered the immediate restoration of the petitioner’s GST registration while clarifying that authorities could still initiate actions against the petitioner in accordance with the law. The case underscores the necessity for reasoned decisions in administrative actions.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
2. The learned counsel for the respondents accepts notice.
