MS Imagine Marketing Limited. Vs Joint Commissioner CGST Appeals II Delhi & Anr. (Delhi High Court)
The writ petition was filed under Articles 226 and 227 of the Constitution challenging the cancellation of GST registration by the tax authorities. The petitioner’s GST registration was cancelled by an order dated 26 November 2024 on the ground that the business was allegedly “non-existent” at its principal place of business. The petitioner had been operating from a premises in Hauz Khas, New Delhi, under valid lease deeds since 2019 and, following downsizing in 2024, was occupying only the second floor of the premises.
A show cause notice (SCN) dated 15 October 2024 was issued proposing cancellation of registration. The SCN did not disclose clear reasons and merely contained generic remarks, including “Others” and “Non Existent.” Thirty days’ time was granted to respond. The petitioner submitted a detailed reply within two weeks, enclosing lease agreements and recent GST returns. Despite this, the cancellation order was passed with effect from 15 October 2024, stating only that the reply was “not considerable,” without explaining why the documents were rejected or why cancellation was made retrospective.
The petitioner thereafter applied for revocation of cancellation. A fresh SCN dated 26 December 2024 proposed rejection of the revocation application, alleging non-submission of various documents. Although only seven days were granted, the petitioner filed a reply on 6 January 2025 along with documents. The revocation application was rejected on 8 January 2025 without any discussion or consideration of the reply.
