Case Summary: Arvind Sharma Vs. Superintendent, Range - 115, Central Goods and Service Tax & Anr.
Case Number: W.P.(C) 6535/2024
Order Date: 08 May 2024
Court Name: High Court of Delhi at New Delhi
Summary of Case:
The petitioner, Arvind Sharma, challenged the Show Cause Notice dated 17 July 2023 and the order dated 2 August 2022, which retrospectively canceled his GST registration with effect from 9 October 2019.
Brief Facts of the Case:
Arvind Sharma, a trader in metal scrap, had his GST registration canceled retrospectively. The cancellation was based on allegations of fraud, willful misstatement, or suppression of facts, although specific details were not provided in the Show Cause Notice. The petitioner argued that his business had been shut down since September 2023 and that the cancellation was unjustified and procedurally flawed.
Submission by Petitioner: The petitioner contended that:
· The Show Cause Notice was vague and lacked specific allegations.
· The notice did not provide the name, designation, or office of the issuer, nor a clear indication of where and to whom the petitioner should appear.
· The cancellation order was unreasoned and lacked clarity on the grounds for cancellation.
· He had ceased business operations in September 2023 and sought the cancellation of his registration effective from 2 August 2023, not retrospectively.
Submission by Respondent: The respondent argued that:
· The cancellation was based on a recommendation from the Deputy Commissioner (Anti Evasion) after a physical verification revealed that the petitioner's business premises could not be located and local inquiries could not trace the petitioner.
· The petitioner's GST registration should be canceled from the date of registration due to non-existence of the business.
Findings and Decision: The court found:
· The Show Cause Notice was defective, lacking specifics and clarity, and was not signed by a proper officer.
· The cancellation order was unreasoned and did not provide grounds for cancellation. The cancellation of GST registration retrospectively should be based on objective criteria and proper satisfaction by the officer, which was not demonstrated in this case.
Conclusion: The court modified the cancellation order to be effective from 2 August 2023, rather than retrospectively. The court emphasized that respondents could take steps to recover any dues in accordance with the law, including issuing a proper Show Cause Notice if needed.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
