2025 (6) TMI 1498 - HC - GST

Challenge to SCN for cancellation of GST registration - violation of Rule 21(b) for issuing invoices without supply of goods or services - HELD THAT - Considering that the impugned show cause notice is almost 6 months old let the Petitioner file a reply. In the reply the Petitioner shall disclose to the Delhi GST Department if there is any show cause notice issued against the Petitioner by the CGST Department including in respect of availment of Input Tax Credit etc. Upon the reply being filed by 1st July 2025 the DGST shall take a decision within a period of one month. The DGST is also free to verify from the CGST of any proceedings that may be pending against the Petitioner. Petition disposed off.

Summary

The Delhi High Court, exercising jurisdiction under Articles 226 and 227 of the Constitution of India, addressed a petition challenging the show cause notice dated 21st November 2024 for cancellation and suspension of the Petitioner's GST registration. The suspension was premised on alleged violation of Rule 21(b) for issuing invoices without supply of goods or services.The Court noted that despite repeated requests, the Department had not responded to the Petitioner's appeals for restoration. The CGST Department's alert had triggered the impugned show cause notice and suspension.Given the six-month lapse since issuance, the Court directed the Petitioner to file a detailed reply by 1st July 2025, disclosing any related show cause notices issued by the CGST Department, including those concerning Input Tax Credit. The Delhi GST Department (DGST) was mandated to decide the matter within one month of the reply, with liberty to verify pending proceedings with the CGST Department.Recognizing the Petitioner's grievance of business disruption due to suspension, the Court ordered the DGST to conclude its decision by 1st August 2025. The CGST Department was instructed to provide any requested information promptly. The petition was disposed of accordingly.