M/S S A Traders v. Principal Commissioner Of Central Goods And Services Tax, East Delhi

$~31 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 15994/2024 M/S S A TRADERS .....Petitioner Through:

Mr. Pranay Jain & Mr. Karan Singh, Advs.

versus PRINCIPAL COMMISSIONER OF CENTRAL GOODS AND SERVICES TAX, EAST DELHI .....Respondent Through:

Mr. Avijit Dikshit, SC.

CORAM:

HON'BLE MR. JUSTICE YASHWANT VARMA HON'BLE MR. JUSTICE DHARMESH SHARMA

O R D E R

% 26.11.2024 1.

This instant writ petition has been preferred impugning the order dated 21 February 2024 pursuant to which the respondents have proceeded to cancel the Goods and Services Tax1 registration of the writ petitioner, as well as the order dated 29 May 2024 by which its application for revocation of cancellation has come to be rejected. 2.

From the record, it would emerge that proceedings for cancellation were commenced pursuant to a Show Cause Notice2 dated 01 February 2024. The said notice reads as follows:- "Form GST REG-17 [See Rule 22(1)/ sub-rule (24) of rule 214] Reference Number: ZA0702240022629 Date:01/02/2024 1 GST 2 SCN The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

Registration Number (GSTIN/Unique ID): 07FRMPS9024QIZO Shahzad KH NO 120, GROUND FLOOR, Mandoli, Main Mandoli Road, New Delhi, Shahdhara, Delhi, 110093 Show Cause Notice for Cancellation of Registration Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:

1 Non compliance of any specified provisions in the GST Act or the Rules made thereunder as may be prescribed. You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice. You are hereby directed to appear before the undersigned on 06/02/2024 at 12:52 PM If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Please note that your registration stands suspended with effect from 01/02/2024 Kindly refer the supportive document attached for case specific details.

Place: Delhi Date: 01/02/2024"

3.

Absent any reply being submitted, the respondent proceeded to pass a final order of cancellation on 21 February 2024. 4.

As we view the SCN for cancellation, we find that all that the respondent has asserted was "Non compliance of any specified provisions in the GST Act or the Rule". It is thus ex facie, apparent that the SCN failed to assign or disclose any reasons or even specify The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

the particular provision of the Goods and Services Tax Act, 20173 or the Goods and Services Tax Rules, 20174 which were alleged to have been violated. The final order of cancellation suffers from a graver error since it neither alludes to nor even remotely suggests the reason which ultimately weighed upon the respondent to cancel the registration. In fact the order neither records nor ascribes any reason. 5.

Aggrieved by the aforesaid action, the petitioner moved an application seeking revocation of the 13 March 2024. While considering the aforesaid application, a SCN came to be issued on 16 May 2024 and which reads thus:- "Form GST REG-23 [See Rule 23(3)] Reference Number: ZA070524093134L Date: 16/05/2024 SHAHZAD GROUND FLOOR, KH NO 120, Mandoli, New Delhi, Main Mandoli Road, Shahdara, Delhi, 110093 GSTIN: 07FRMPS9024Q1Z0 Application Reference Number (ARN): AA070324031445J Date: 13/03/2024 Show Cause Notice for rejection of application for revocation of cancellation of registration This has reference to your application dated 13/03/2024 regarding revocation of cancellation of registration. Your application has been examined and the same is liable to be rejected for the following reasons:

1 Reason for revocation of cancellation - Others (Please specify) - Please upload required documents as per CGST ACT 2017.

You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice. 3 GST Act 4 GST Rules The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

You are hereby directed to appear before the undersigned on 22/05/2024 at 11:30 If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.

Kindly refer the supportive document attached for case specific details."

6.

The application for revocation thereafter came to be disposed of and rejected by the following cryptic order which was passed on 29 May 2024:- "Form GST REG-05 [See Rule 9(4)] Reference Number: ZA070524244068J Date: 29/05/2024 SHAHZAD GROUND FLOOR, KH NO 120, Mandoli, New Delhi, Main Mandoli Road, Shahdara, Delhi, 110093 GSTIN (if available): 07FRMPS9024Q1Z0 Order of Rejection of Application for Revocation of Cancellation You have not replied to the notice issued vide reference no. ZA070524093134L dated 16/05/2024 within the time specified therein. Therefore, your application is hereby rejected in accordance with the provisions of the Act.

MAUJOOD AHMAD SIDDIQUE Assistant Commissioner Ward 77"

7.

As would be evident from a reading of the said order, the same is wholly unreasoned. We accordingly, find ourselves unable to sustain the action of the respondents.

8.

We accordingly allow the writ petition. The impugned orders dated 21 February 2024 and 29 May 2024 are quashed. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.

9.

This order, however, shall be without prejudice to the rights of the respondents to draw proceeding afresh and in accordance with law.

YASHWANT VARMA, J.

DHARMESH SHARMA, J.

NOVEMBER 26, 2024 Ch The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.