2025 (6) TMI 1499 - HC - GST

Cancellation of GST registration - SCN has been issued on the ground that the Petitioner-firm was found to be non-functional during the investigation - HELD THAT - The Court has considered the matter and is of the opinion that the request for re-inspection can also be made to the Adjudicating Authority. In view thereof this Court is not inclined to quash the impugned SCN. At this stage the Petitioner prays that the Respondent-Department provide the Petitioner a personal hearing and conclude the proceeding in a time bound manner as the Petitioner s firm has come to a standstill in view of the suspension initiated vide the impugned SCN. The Respondent-Department is directed to grant the Petitioner a personal hearing and the notice for the same may be issued to the Petitioner - Petition disposed off.

Summary

Summary:The Delhi High Court, in W.P.(C) 8149/2025, addressed a petition under Articles 226 and 227 of the Constitution challenging the Show Cause Notice (SCN) dated 23rd January 2025 issued by the CGST Department seeking cancellation of the Petitioner-firm's registration on grounds of being non-functional. The Court noted that the Petitioner had filed a reply but no decision had been taken on the SCN.Relying on precedent (W.P. (C) 7019/2025, M/s V S Enterprises vs. The Commissioner DGST & Anr), the Petitioner requested a fresh inspection. The Court held that such a request should be made before the Adjudicating Authority and declined to quash the impugned SCN.Importantly, the Court directed the Respondent-Department to grant the Petitioner a "personal hearing" and to conclude the SCN proceedings within three months, recognizing the adverse impact of the suspension on the Petitioner's business.The petition was disposed of accordingly, with all pending applications also disposed of.