HC Set Aside Registration Cancellation Order Passed Without Considering Reply of Petitioner

Case Details: Ottimo Visuals v. Commissioner of GST - [2023] 153 taxmann.com 545 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Vineet Bhatia, Aamnaya Jagannath Mishra, Ms Nidhi Aggarwal & Ms Jyoti Verma, Advs. for the Petitioner.
  • Aditya Singla, Ms Charu Sharma & Ms Peehu Hooda, Advs. for the Respondent.

Facts of the Case

The petitioner’s GST registration was cancelled on account of non-existence of its registered principle place of business on physical verification. It filed writ petition and contended that registration was cancelled despite submitting that the earlier premises, where it was carrying on its business, was destroyed by Northern Railways and, therefore the petitioner was compelled to shift from said premises.

It was also submitted that reply was not considered and registration was cancelled with retrospective effect which was not proposed in SCN. Also, the application of revocation was rejected. However, the Revenue’s case was that place of business was demolished “many years ago” and no building existed on the said premises.

High Court Held

The Honorable High Court noted that the registration was cancelled with retrospective effect though it was not so proposed in SCN. Further, the revocation application was rejected on ground that firm was non-existent and no one appeared for personal hearing and taxpayer did not submit/upload specific reply to query raised.

Admittedly, the petitioner’s Chartered Accountant had appeared and handed over petitioner’s reply to show cause notice along with documentary proofs such as rent receipt, NOC from the landlord etc.

Therefore, it was held that both orders rejecting registration as also revocation of cancellation of registration were liable to be set aside being passed without considering reply of petitioner and the department was given liberty to issue a fresh show cause notice.