GST registration restored when show cause notice itself is deficient
In this case the Hon’ble High Court, Delhi quashed the order cancelling the GST registration as the Show Cause Notice was completely deficient in material particulars.
Facts: In this case, the petitioner/assessee has challenged the order passed by the Appellate Authority (Delhi GST) on the grounds that the show cause notice gave no details as to the date and time on which the petitioner’s authorised representative was to present himself for a personal hearing before the adjudicating authority. Also, the petitioner submitted that neither the show cause notice nor the subsequent order cancelling the petitioner’s GST registration was received by the petitioner.
Petitioner’s Plea: –
- It was submitted on the behalf of the petitioner that the appeal could not have been dismissed on the ground of limitation in view of the order dated 27.04.2021, passed by the Supreme Court in suo motu W.P.(C) No.3/2020 and also the circular dated 20.07.2021, issued by the Central Board of Indirect Taxes and Customs.
- The show cause notice dated 02.12.2019 does not give any details about the date and time of the personal hearing for appearance before the adjudicating authority.
- The petitioner neither received the copy of show cause notice nor the order dated 11.12.2019 cancelling its registration.
- The petitioner did not receive intimation regarding issuance of aforesaid show cause notice and cancellation of registration order as at the relevant time, the then directors of the petitioner were at cross purposes.
- There was no outstanding demand against the petitioner which is quite evident from the order dated 11.12.2019.
On the other hand, it was admitted on the behalf of the respondents that aforesaid order of Supreme Court dated 27.04.2021 would apply as per the circular dated 20.07.2021
- The Hon’ble Court after considering the submissions from the both sides and facts of the case noticed that ordinarily, we would have set aside the impugned order and remitted the matter to the Appellate authority to decide on merits, however, the show cause notice issued to the petitioner is completely deficient in material particulars. Thus, remanding the matter to the appellate authority would not serve any purpose.
- The show cause notice dated 02.12.2019 does not provide any details regarding date and time of the personal hearing, on which the authorized representative of the petitioner was required to appear before the adjudicating authority.
- A perusal of the cancellation of registration order shows there was no demand outstanding against the petitioner.
The Hon’ble Court with the above findings set aside the impugned order dated 26.10.2021 and the cancellation of registration order dated 11.12.2019 with the directions to the respondents to restore the petitioner’s GST registration within 10 days of the receipt of the judgment.