Application for Revocation of Cancellation Could Not Be Delayed by Dept. Seeking Reconciliation of Discrepancy in ITC | HC

Case Details: Cuthbert Winner LLP v. Assistant Commissioner of CGST - [2023] 157 taxmann.com 505 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Aditya Kaumar, Tarun Chawla, Pravesh Bahuguna & Ms Priyanka Chawla, Advs. for the Petitioner.
  • Harpreet Singh, Sr. Standing Counsel, Ms Suhani Mathur & Jatin Kumar Gaur, Advs. for the Respondent.

Facts of the Case

In the present case, the assessee had made an application to reflect change of its principal place of business in GST records. After submission of the said application, the proper officer issued a notice demanding proof of new address and in the meanwhile, certain officers of DRI visited assessee’s previous place of business and found that assessee was not present at said premises. Thereafter, assessee’s application was rejected and assessee’s registration was suspended on ground that it was found to be non-existent at its registered address.

It applied for revocation of cancellation order and furnished information regarding change of its principal place of business but the proper officer had issued a further communication seeking reconciliation of difference between ITC claimed and ITC available in GSTR-2A. It filed writ petition against the demand of further information and not deciding revocation application till date.

High Court Held

The Honorable High Court noted that the discrepancy in credit claimed by assessee was not ground on which assessee’s GST registration was cancelled. Therefore, the Court held that the proper officer should decide assessee’s application for revocation of cancellation order after examining all aspects as to whether assessee was existent at its principal place of business at material time.

The Court also directed that GST registration would be restored if the proper officer will find that the assessee was existent at its principal place of business prior to applying for change of address.