Dept. Can’t Cancel Registration on Ground That Firm Not Found During Physical Verification Without Hearing Assessee | HC

Case Details: Rane Brake Lining Ltd. v. Superintendent, Range-17, Central GST Division - [2024] 159 taxmann.com 596 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • Pulkit Verma & Peyush Pruthi, Advs. for the Petitioner
  • Abhishek, Adv., Harpreet Singh, Sr. Standing Counsel, Ms Suhani Mathur, Jatin Kumar Gaur & Gurpreet Singh Gulati, Advs. for the Respondent.

Facts of the Case

In the present case, a show cause notice was issued to assessee seeking to cancel GST registration on ground of non-availability of assessee at registered office on date of physical verification. Thereafter, an order was passed cancelling registration retrospectively and application seeking revocation of cancellation was also rejected. It filed writ petition against the order of cancellation.

High Court Held

The Honorable High Court noted that the grounds for cancellation were different from grounds mentioned in show cause notice. Moreover, the assessee was never intimated as to real ground for cancellation and order also suffered from infirmity inasmuch as Assessing Officer seemed to have considered a reply of assessee when no such reply had been filed.

The Court also noted that assessee was never put to notice that registration was liable to be cancelled retrospectively and registration could not be cancelled with retrospective effect mechanically. Therefore, the Court held that both show cause notice as well as order cancelling registration with retrospective effect and order rejecting revocation application were to be set aside and registration was to be restored.