Court quashes show cause notice, directs GST change, acknowledges registration error.

The court granted the petitioner's request to quash the show cause notice issued by Delhi GST/respondent No. 2 as the notice was rescinded, rendering the issue moot. The court directed respondent No. 2 to consider the petitioner's representation for changing the levy from regular to composition, ensuring prompt recommendation to GSTN upon approval. The inadvertent error in the petitioner's registration as an interstate supplier was acknowledged, emphasizing the need for corrective action. Pending consideration of the representation for levy change was expedited, with a compliance date set for monitoring implementation of court orders.

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Issues:
1. Quashing of show cause notice dated 08th February, 2021.
2. Reverting/changing nature of levy from regular to composition levy.
3. Registration as an interstate supplier due to inadvertent error.
4. Pending consideration of representation for reversion from regular to composition levy.
5. Direction to respondent No. 2 for timely consideration and recommendation to GSTN.
6. Disposal of the writ petition and setting compliance date.

Analysis:
1. The petitioner filed a writ petition seeking the quashing of the show cause notice dated 08th February, 2021 issued by Delhi GST/respondent No. 2. The respondent No. 2 rescinded the show cause notice on 23rd February, 2021, rendering the issue moot.

2. The petitioner requested a change in the nature of levy from regular to composition levy, emphasizing the lack of engagement in interstate outward supply of goods. The court directed respondent No. 2 to consider the petitioner's representation for reversion within two weeks, subject to fulfillment of eligibility criteria, and recommend the case to GSTN promptly upon approval.

3. The petitioner's registration as an interstate supplier was acknowledged as an inadvertent error by the learned counsel, highlighting the need for corrective action to align with the actual business activities.

4. The representation for reversion from regular to composition levy was confirmed to be pending consideration before respondent No. 2. The court intervened to ensure timely review and decision-making, emphasizing adherence to due process and eligibility criteria.

5. In response to the arguments presented, the court directed respondent No. 2 to expedite the evaluation process and, if found eligible, recommend the petitioner's case for reversion to GSTN within the specified time frame, ensuring efficient resolution of the matter.

6. The writ petition, along with any pending applications, was disposed of based on the directions provided. A compliance date of 6th December, 2021, was set for monitoring the implementation of the court's orders, with instructions for immediate website upload and email dissemination of the order to the concerned parties.

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