2025 (3) TMI 1468 - HC - GST

Landmark Ruling: GST Registration Cancellation Halted, Petitioner Granted Fair Hearing and Right to Respond to Show Cause Notice

LOKESH SANITARY STORE Versus PRINCIPAL COMMISSIONER OF DEPARTMENT OF TRADE AND TAXES, GOVERNMENT OF NCT OF DELHI

HC allows challenge to GST registration cancellation, directing tax authorities to provide petitioner opportunity to respond to Show Cause Notice. Court ... Cancellation of registration of petitioner - petitioner was unable to furnish a reply to the same within the time that had been stipulated - HELD THAT:- The ends of justice would warrant the petitioner being accorded an opportunity to furnish a response to the SCN and for proceedings being taken thereafter and in accordance with law. Petition disposed off. Writ challenging cancellation of GST registration under the Goods and Services Tax Act, 2017. The cancellation dated 30 May 2024 followed a Show Cause Notice ('SCN') dated 15 January 2024 alleging: '1 Rule 21(a)-person does not conduct any business from declared place of business.' The petitioner failed to file a reply within the stipulated time. The court concluded that 'the ends of justice would warrant the petitioner being accorded an opportunity to furnish a response to the SCN' and directed that the petitioner submit a response within two weeks. The respondent must accept the reply, grant a personal hearing, and decide the proceedings thereafter in accordance with law, preferably within two weeks of receipt of the reply. The impugned cancellation order dated 30 May 2024 shall 'abide by the fresh decision' to be taken following the prescribed procedure. Exemption application allowed subject to exceptions; the application stands disposed of.