Case Law Details
Maa Jhandewali Traders Vs Principal Commissioner of Goods And Service Tax North Delhi (Delhi High Court)
In a significant judgment, the Delhi High Court addressed the petition filed by Maa Jhandewali Traders against the cancellation of their GST registration by the Principal Commissioner of Goods and Service Tax North Delhi. The court’s decision, rendered on the backdrop of procedural lapses and the need for due process, has implications for GST compliance and enforcement practices.
Background of the Dispute: The contention arose from the GST registration cancellation order dated 21.07.2023, based on allegations of mis-statement or suppression of facts by Maa Jhandewali Traders. The petitioner challenged the show cause notice’s lack of specifics regarding the alleged fraud, leading to the impugned cancellation order.
Procedural Aspects: The Delhi High Court identified procedural irregularities in the issuance and content of the show cause notice, notably the absence of detailed allegations and the non-disclosure of the issuing officer’s name or designation. Despite the respondent’s claim that detailed reasons were available on the GST portal, the petitioner contested this, stating no further information was provided beyond the initial notice.
Court’s Decision: The Court found merit in the petitioner’s arguments, recognizing the need for a detailed and specific show cause notice to enable an adequate response. However, given that the petitioner had engaged with the process by filing a preliminary reply and an application for revocation, the Court decided against outright dismissal of the show cause notice. Instead, it set aside the cancellation order, granting the petitioner one week to submit a detailed response and directing the authority to re-adjudicate the matter within 30 days, with provisions for a personal hearing and potential re-inspection of the premises.
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