Delhi HC Set Aside Cancellation Order Which Didn’t Indicate What Fraud Was Allegedly Perpetuated by Petitioner

Case Details: Green Polymers v. Union of India - [2023] 154 taxmann.com 330 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Sunil Dalal, Sr. Adv. Ms Manisha Saroha, Mahabir Singh, Navish Bhati, Nikhil Beniwal, Suresh Chaudhary, Gagan Kumar Singhal & Rahul Dev, Advs. for the Petitioner.
  • Jitesh Vikram Srivastava, Ravindra Vikram Singh, Harpreet Singh & Ms Suhani Mathur, Advs. for the Respondent.

Facts of the Case

The petitioner filed the present petition to challenge the cancellation order passed by the GST department. It was contended that the order was issued and GST registration was cancelled based on allegations of fraud, wilful misstatement or suppression of facts, however, it was subsequently restored upon petitioner’s application for revocation. Subsequently, the GST registration was again cancelled based on similar grounds and did not indicate any specific reasons for proposing the said cancellation of registration.

High Court Held

The Honorable High Court noted that in the impugned SCN nothing was mentioned except from allegation of fraud allegedly perpetuated by petitioner or wilful misstatement allegedly made by petitioner. It was clear that the impugned SCN and order were incapable of eliciting any meaningful response as it did not indicate any specific reason(s) for proposing cancellation of the petitioner’s GST registration. Therefore, the Court held that the order and SCN were liable to be set aside.