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Case Summary: M/s Steelmart India vs. Principal Commissioner of
Goods and Services Tax, South Delhi
Case Number: W.P.(C)
9454/2024 CM APPL. 38765/2024
Date of Order: 16
July 2024
Court: High
Court of Delhi
Summary of the Case: M/s
Steelmart India filed a writ petition challenging the Show Cause Notice dated
26 June 2024, which proposed to cancel its GST registration and suspended the
registration. The petition contended that the notice was issued without
providing the necessary Memo detailing the allegations.
Facts of the Case: The
petitioner was registered with the GST authorities since 3 August 2023. The
Show Cause Notice cited two reasons for the proposed cancellation: failure to
file returns and non-existence/non-functionality at the principal place of
business.
Submissions by the
Petitioner:
·
The petitioner did not receive the Memo
that detailed the allegations, making it impossible to respond properly.
·
The petitioner challenged the notice on
the grounds that it did not include specifics of the allegations.
Submissions by the
Respondent: The respondent admitted that the Show
Cause Notice was based on the Memo and that the Memo was not communicated to
the petitioner. The respondent provided details in the counter-affidavit,
alleging the petitioner engaged in passing fake Input Tax Credit.
Findings of the Court:
·
The court found merit in the petitioner’s
contention that the Show Cause Notice was vulnerable due to the lack of
detailed allegations.
·
The object of a show cause notice is to
enable the noticee to respond to the allegations, which was not possible in
this case due to missing details.
Judgment:
·
The court permitted the petitioner to
respond to the allegations set out in the counter-affidavit, considering them
as part of the Show Cause Notice.
·
The petitioner was given four working days
to respond and to appear before the Proper Officer on 26 July 2024.
·
The Proper Officer was requested to make
an informed decision as expeditiously as possible, preferably within a week
from 26 July 2024.
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.
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