HC sets aside GST Registration Cancellation Order due to Lack of Consideration
- Blog|News|GST & Customs|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 16 April, 2023
Latest from Taxmann
Case Details: Parshant Timber v. Commissioner of Delhi Goods and Services Tax - [2023] 149 taxmann.com 217 (Delhi)
Judiciary and Counsel Details
-
- Vibhu Bakhru & Amit Mahajan, JJ.
- Rakesh Kumar, Subhash Chandra Gupta, Parveen Kumar Gambhir & Shailendra Kr. Verma, Advs. for the Petitioner.
- Rajeev Aggarwal, Ms Shilpa Singh & Ms Divyanshi Bansal, Advs. for the Respondent.
Facts of the Case
The petitioner had made an application praying that his registration to be cancelled and the reason for seeking cancellation of the registration was disclosed as “Discontinuance of business/Closure of business”. The department issued notice which stated that “Please reply ASMT 10 and pay due tax with interest and penalty”.
The petitioner didn’t respond to the notice and the application was rejected by the department without providing any reasons. It filed writ petition before the High Court to challenge the rejection of cancellation application and contended that he has a right to seek cancellation of the registration on ground of closure of business.
High Court Held
The Honorable High Court noted that the business was closed and cancellation of GST registration was sought and therefore, returns were not filed for subsequent period. However, the impugned order stating reply as considered had been passed without application of mind as no reply was filed by the petitioner.
Moreover, the impugned order was unsustainable as it did not disclose any reason. The Court also noted that the show cause notice was cryptic and did not mention particular reason for rejecting application of petitioner. Therefore, the Court held that the petition was allowed and Authority was directed to cancel registration from date requested.
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
