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M/s. Birchand vs. Commissioner of DGST, Delhi and Others
Case No.: W.P.(C)
9518/2024
Order Date: 15
July 2024
Court: High
Court of Delhi
Case Summary: The petitioner challenged the retrospective
cancellation of its GST registration due to an unclear show cause notice that
failed to specify the reasons for the proposed action and lack of a real
opportunity to be heard.
Case Facts:
·
The petitioner's GST registration was
issued on 01.07.2017.
·
Discrepancies in returns led to a notice
on 27.01.2021, which the petitioner did not respond to.
·
A show cause notice (SCN) was issued on
16.03.2021, suspending the GST registration due to "REPLY OF ASMT-10 NOT
YET FILED/RECEIVED".
·
The SCN did not specify a personal hearing
date, depriving the petitioner of an opportunity to be heard.
·
The GST registration was cancelled
retrospectively from 15.07.2017.
·
No tax was determined to be due by the
petitioner.
·
The petitioner claimed not to have
received physical notice and was affected by the COVID-19 pandemic.
·
An appeal filed on 09.09.2022 was rejected
due to the lapse of the stipulated period for filing appeals.
Petitioner's Submissions:
·
Contended that the SCN was vague and
lacked specific allegations.
·
Highlighted the lack of reasons in the
cancellation order and the unfairness due to the retrospective effect.
Respondent's Submissions:
·
Did not contest the factual scenario
presented by the petitioner.
Court Findings and
Judgment:
· The
court found the SCN cryptic and the cancellation order unreasoned, thus
violating principles of natural justice.
Judgment:
·
Set aside the SCN and the cancellation
order.
·
Directed the Appellate Authority to decide
the appeal afresh on merits, uninfluenced by the question of delay, and to
afford the petitioner an opportunity for a personal hearing.
·
The appeal is to be disposed of
expeditiously, preferably within eight weeks.
The petition was disposed
of, emphasizing the necessity for specific allegations in show cause notices
and adherence to due process to ensure fairness.
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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