Case Law Details
Rajdhani Trading Co. Vs Principal Commissioner Of Department Of Trade And Taxes (Delhi High Court)
The High Court has restored the petitioner’s GST registration after finding that the Show Cause Notice (SCN) did not provide any date, time, or venue for a personal hearing. This oversight was deemed a breach of natural justice principles. The petitioner must clear dues within four weeks to maintain the restoration order.
In a significant judicial decision, the Delhi High Court has intervened in the case of Rajdhani Trading Co. vs Principal Commissioner of Department of Trade and Taxes, setting aside the cancellation of GST registration. The court found procedural irregularities concerning natural justice, specifically the absence of details for a personal hearing in the Show Cause Notice (SCN).
The petitioner, Rajdhani Trading Co., had its GST registration cancelled due to non-filing of returns for six consecutive months. This action was initiated following a Show Cause Notice issued by the respondent, which did not specify the date, time, or venue for a personal hearing. Despite the petitioner’s failure to respond to the SCN, the Delhi HC noted a critical procedural flaw: the lack of opportunity for a personal hearing, a fundamental tenet of natural justice.
The court deliberated on the petitioner’s plea, emphasizing its willingness to comply with tax obligations and arguing the necessity of GST registration for business continuity. On the other hand, the respondent acknowledged the petitioner’s statutory non-compliance but conceded the absence of a personal hearing opportunity as stated in the SCN.
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