Singla Exports Vs Central Board of Indirect Taxes And Customs & Ors. (Delhi High Court)
In a significant judgment, the Delhi High Court in Singla Exports v. Central Board of Indirect Taxes and Customs & Ors [W.P.(C) 2732 of 2023 dated August 09, 2023] has set aside an automated order which led to the cancellation of GST registration. This case revolved around the principle that reasons must be specified when taking administrative actions, a fundamental principle of justice.
Facts:
M/s. Singla Exports (“the Petitioner”) decided to discontinue the business operations. Accordingly, the Petitioner filed an application for cancellation of its GST Registration with effect from April 30, 2022.
The Revenue Department issued a SCN dated May 05, 2022 (“the Impugned SCN”) to the Petitioner seeking documents and details from the Petitioner.
The Revenue Department did not process the Petitioner’s application on the ground that the Petitioner had not responded to the Impugned SCN seeking further documents and details.
Thereafter the Revenue Department vide the Order dated June 10, 2022 (“the Impugned Order”) cancelled the GST Registration of the Petitioner w.e.f. July 02, 2017.
Aggrieved by the Impugned Order the Petitioner filed writ before the Hon’ble Delhi High Court.
Issue:
Whether the GST registration can be cancelled without mentioning proper reason in Registration cancellation Order?
Held:
The Hon’ble Delhi High Court in W.P.(C) 2732 of 2023 held as under:
