Ujjwal Garg Vs Commissioner (Delhi High Court)
Delhi High Court held that suspension of GST registration alleging non-compliance with rule 86B of CGST Rules not justified as assessee deposited required amount. Thus, petition allowed and direction given for restoration of GST registration.
Facts- The petitioner was registered under the Central Goods and Services Tax Act, 2017/ the Delhi Goods and Services Tax Act, 2017. The proper officer issued a Show Cause Notice dated 14.08.2024 proposing to cancel the petitioner’s GST registration on account of violation of provisions of rule 86B. The petitioner’s GST registration was suspended with effect from date of the SCN, that is, with effect from 14.08.2024.
Notably, the petitioner responded to the SCN and enclosed a challan reflecting payment of a sum of ₹80,000/-.
Conclusion- Held that suspension of a taxpayer’s GST registration has wide adverse ramifications for the business of the taxpayer. Thus, such an action can be taken only after due consideration. Since, the only allegation in the SCN is that the petitioner has not complied with Rule 86B of the CGST Rules/DGST Rules, which in effect stands remedied by deposit of the amount of ₹80,000/- with the Revenue, we consider it apposite to allow the present petition and direct the respondents to forthwith restore the petitioner’s GST registration.
