2025 (5) TMI 1353 - HC - GST

Cancellation of the GST registration retrospectively - principal place of business not found/available at the field visit - No opportunity to be heard and no reply to the SCN - principles of natural justice - Validity of SCN and impugned order - HELD THAT - Considering the fact that the Petitioner did not get a proper opportunity to be heard and no reply to the SCN has been filed by the Petitioner the matter deserves to be remanded back to the concerned Adjudicating Authority. Accordingly the impugned order is set aside. The Petitioner is granted time till 10th July 2025 to file the reply to SCN. Upon filing of the reply the Adjudicating Authority shall issue a notice for personal hearing to the Petitioner. The reply filed by the Petitioner to the SCN along with the submissions made in the personal hearing proceedings shall be duly considered by the Adjudicating Authority and a fresh order with respect to the SCN shall be passed accordingly. The present writ petition is disposed of in above terms.

Summary

The Delhi High Court, through Justices Prathiba M. Singh and Rajneesh Kumar Gupta, set aside the impugned order dated 12th March 2021, which cancelled the GST registration of the Petitioner, Shiv Traders, retrospectively from 21st August 2017, on the ground that the principal place of business was not found during a field visit. The Court noted that although a show cause notice (SCN) was issued on 13th January 2021, no reply was filed by the Petitioner, yet the impugned order erroneously recorded receipt of a reply dated 22nd January 2021. Moreover, the Petitioner was not provided the field visit report forming the basis of the SCN and cancellation.The Court directed that the field visit report be supplied to the Petitioner within two weeks and remanded the matter to the Adjudicating Authority for fresh consideration, emphasizing the Petitioner's right to a proper opportunity of hearing. The Petitioner was granted time until 10th July 2025 to file a reply to the SCN. Upon filing, the Adjudicating Authority must issue a personal hearing notice and consider all submissions before passing a fresh order. The Court ensured the Petitioner's access to the GST portal for uploading replies and documents.All rights and remedies of the parties were kept open, and the writ petition was disposed of accordingly.