GST registration cannot be suspended for more than 2 months on the basis of SCN lacking any reason or fact

Shakti Shiva Magnets Private Limited Vs Assistant Commissioner & Ors. (Delhi High Court)

GST registration cannot be suspended for more than 2 months on the basis of SCN lacking any reason or fact

The Hon’ble Delhi High Court in Shakti Shiva Magnets Private Limited v. Assistant Commissioner & Ors [W.P.(C) 1559/2022 dated January 31, 2022] quashed the Show Cause Notice (’SCN) issued by the Revenue Department suspending GST registration of the assessee and directed to reissue a fresh SCN with all the relevant facts and reasons within a week’s time regarding. Further, directed the Revenue Department to restore the assessee’s GST registration and issue a practice direction so that in future, if any SCN for cancellation of GST registration is issued, the same is not bereft of any material particulars or reasons.

Facts:

Shakti Shiva Magnets Private Limited (the Petitioner) has filed this petition against the SCN issued dated November 11, 2021 (“the impugned SCN”) by Revenue Department (“the Respondent”) due to which the Petitioner’s registration was suspended for more than 2 months with no sufficient explanation or reason or fact.

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