Delhi HC Quashes GST Registration Cancellation as There Was Procedural Lapse by CGST Officer

Case Details: Abhishek Appliance (P.) Ltd. v. Assistant Commissioner, CGST - [2024] 165 taxmann.com 371 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Ms Anjali Jha Manish, Priyadarshi Manish & Ms Divya Rastogi, Advs. for the Petitioner.
• Atul Triapthi, SCC & V.K. Attri, Adv. for the Respondent.

Facts of the Case

The petitioner was engaged in the business of manufacturing and trading of electrical appliances. The department conducted an inspection at the premises of the petitioner and found that the principal place of business was non-existent. The department issued SCN for cancellation of registration. The petitioner submitted a reply and contended that the site was under construction and it had applied for change of address. However, the department cancelled the registration with retrospective effect. Consequently, the petitioner filed a writ petition against the cancellation order.

High Court Held

The Hon’ble High Court noted that the only reason for which the petitioner’s GST registration was cancelled was that the petitioner had been found non-existent at its principal place of business. It was also evident that the petitioner had sought to change its principal place of business more than once.

The High Court further noted that the petitioner should have been given opportunity to respond to allegations and submit evidence regarding place of business. Therefore, the Court set aside the cancellation order and matter was remanded for reconsideration after affording personal hearing to petitioner.