revocation of cancellation of G.S.T
Case Title | Aditya Narayan Ojha vs Principal Commissioner CGST Delhi |
Court | Delhi High Court |
Honorable Judges | Justice Rajiv Shakdher and Justice Tara Vitasta Ganju |
Citation | 2022 (8) GSTPanacea 170 HC Delhi W.P.(C) 8508/2022 |
Judgement Date | 02-August-2022 |
Council for Petitioner | Mr. Karan Sachdev and Akshay Ravi |
Council for Respondent | Mr. Akash Vajpai |
The High Court of Delhi, bench of Justices Rajiv Shakder and Tara Vitasta Ganju held that The restoration of G.ST. Registration of the applicant shall be carried out within one week from the date of receipt of a copy of this judgement.
Facts of the Case
The principal grievance of the petitioner is that its GST registration has not been restored, despite the order dated 07.01.2022 passed by the Joint Commissioner, Central Goods and Service Tax (Appeals-I), Delhi. Via the aforesaid order, the appellate authority has revoked the order by which the petitioner’s GST registration was cancelled.
In the SCN, the proposal to cancel the petitioner’s registration was premised on the following: “In case, Registration has been obtained by means of fraud, wilful misstatement or suppression of facts.” Via the SCN, the petitioner was granted seven (7) working days to respond i.e., present its defence. Besides this, the SCN also indicated the date and time when its representative would be heard in support of its stand. Concededly, the petitioner neither filed a reply, nor did anyone appear before the concerned officer. Strangely, the order cancelling the registration dated 10.10.2021 alludes to a reply dated 07.10.2021, when none was filed by the petitioner, as is evident on perusal of the counter-affidavit filed by the respondents/revenue. Thereafter, as noticed above, the petitioner’s registration was cancelled via order dated 10.10.2021.
Thus, being aggrieved, the petitioner preferred an appeal. The first appellate authority, as noticed above, reversed the order dated 10.10.2021 and passed the following order on 07.01.2022. The reasoning put forth by the first appellate authority reads as follows:
“Now I take up for consideration the plea made by the Appellant for revocation of their cancelled registration; what is to be examined is whether sufficient cause exists for revocation of cancellation of registration. The Appellant has stated that he is Proprietor of firm M/s Amit Associates. The Appellant vide letter dated 31.12.2021 has submitted Undertaking stating that they had filed GST returns till September 2021 along with tax amount, shall file pending returns with tax within 15 days of restoration of GST registration along with interest, shall pay any other government dues if found subsequently under the GST Act. I observe that the default by the Appellant was not wilful. There is also an Undertaking of the Appellant on record to make the payment of pending taxes and filing of pending returns. The law also permits revocation of cancellation of registration on sufficient cause being shown; the cause shown by the Appellant is sufficient to allow revocation of cancellation of registration
revocation of cancellation of G.S.T
Court Held
The Court held that that the Respondents have made undue daily in complying with Order in Appeal dated 07.01.2022. The respondents/revenue, at this juncture, have no other alternative, but to comply with the order of the first appellate authority, given the fact that they have taken no steps to approach this Court, despite liberty having been given, in that behalf, on 02.06.2022. The first appellate authority has given a rationale for revoking the order cancelling the petitioner’s GST registration; as noted hereinabove. It cannot but be accepted that under Rule 25 of the Central Goods and Services Tax Rules, 2017, before carrying out physical inspection, the respondents/revenue are required to serve a notice on the concerned person/entity. However, as noticed above, all this did not form part of the order dated 10.10.2021. The only reason adverted to in the order dated 10.10.2021 is: “No response received from the taxpayer’s end” In particular, there is no reference in the order dated 10.10.2021 to the fact that the petitioner was not found to be in existence and therefore, registration was cancelled. The restoration will be carried out within one week from the date of receipt of a copy of this judgement.
.
revocation of cancellation of G.S.T
Analysis of the Judgement
By noticing the above order we analyse that the Cancellation of GST Registration needs proper and valid reasons and if application for revocation of cancellation of G.S.T Registration is made by the applicant the G.S.T Authorities should properly see all the circumstances and dive into the merit of case and if sufficient cause exist shall pass an order of revocation of cancellation of G.S.T Registration.
Downlond PDF:
For reference visit: