Case Law Details
VS Enterprises Vs Commissioner DSGST & Anr. (Delhi High Court)
The Delhi High Court, in the case of VS Enterprises vs. Commissioner DSGST & Anr., has directed the Sales Tax Officer Class II/AVATO, Delhi, to re-inspect the business premises of VS Enterprises. The petitioner had challenged a show cause notice dated June 12, 2023, which proposed cancellation of its Goods and Services Tax (GST) registration and suspended it from the same date. The notice cited that the petitioner was allegedly not conducting business from its declared place.
VS Enterprises contended that it was indeed operating from the registered address and sought re-verification. The respondents noted a significant delay in the petitioner’s reply to the show cause notice, which was finally filed on April 2, 2025.
Considering that no decision was made on the show cause notice, the court ordered the re-inspection of the petitioner’s premises. Additionally, the reply dated April 2, 2025, must be taken on record, and a personal hearing granted to VS Enterprises. Following the hearing, an adjudication order is to be passed within four weeks. The court disposed of the petition with these directions.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. This hearing has been done through hybrid mode.
2. The present petition has been filed on behalf of the Petitioner-M/s VS Enterprises under Article 226 of the Constitution of India inter alia assailing the Show Cause Notice dated 12th June, 2023 (hereinafter, the ‘Show Cause Notice’) issued by the Sales Tax Officer Class II/AVATO, Delhi.
3. Vide the Show Cause Notice, the Petitioner was asked to show cause as to why its Goods and Services Tax (‘GST’) registration should not be cancelled, considering that the Petitioner was not conducting its business from the declared place of business. Further, vide the Show Cause Notice, the registration was also suspended with effect from 12th June, 2023.
4. It is submitted on behalf of the ld. Counsel for the Respondents that the Petitioner did not file any reply for a substantial period of time. A reply was finally filed on 2nd April, 2025.
5. Ld. Counsel for the Petitioner, on the other hand argues that the Petitioner was in fact conducting business from the declared place of business and a re-verification of the same is required.
6. Considering that the Show Cause Notice has never been decided, the following directions are issued:
i. The re-inspection of the Petitioner’s premises shall be conducted.
ii. The reply dated 2nd April, 2025 shall be taken on record.
iii. Personal hearing shall be granted and after hearing the Petitioner or its authorised person, the adjudication order shall be passed in accordance with law within a period of four weeks. Personal hearing notice be given to the Petitioner at the below email address and mobile number:
Email ID: attorney.manish@gmail.com
Mobile No.: 9871191293
7. The petition is disposed of in these terms. Pending application(s), if any, are also disposed of.
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