Full Text
HIGH COURT OF DELHI
,,,,,,,,,, W.P.(C) 16189/2023 & CM APPL. 65071/2023
MS RS WIRES INDUSTRIES THROUGH PROPRIETOR RAJENDER SINGH
SALES TAX OFFICER CLASS II AVATO WARD 63 ZONE 6 DELHI
Advocates who appeared in this case:
For the Petitioner:
For the Respondent
JUDGMENT
1. Petitioner impugns show cause 18.04.2022 and the orders of rejection and applications for revocation of cancellation dated 30.08.2023.
2. Learned counsel for the petitioner submits that show cause notice issued under Section 29 of the Goods and Services Tax Act, 2017 [‘the Act’] was itself defective as it did not give any details of the alleged wrongful availment or utilization of input tax credit.
IN THE HIGH COURT OF DELHI AT
NEW DELHI Date of decision W.P.(C) 16189/2023 & CM APPL. 65071/2023 MS RS WIRES INDUSTRIES THROUGH PROPRIETOR RAJENDER SINGH versus SALES TAX OFFICER CLASS II AVATO WARD 63 ZONE 6 DELHI Advocates who appeared in this case: Mr. R. P. Singh & Ms. Priyanka Goel, Advocates For the Respondents: Mr. Rajeev Aggarwal with Ms. Samridhi Vats, Advocate. HON’BLE MR.
JUSTICE SANJEEV SACHDEVA HON'BLE MR.
JUSTICE RAVINDER DUDEJA
JUDGMENT
SANJEEV SACHDEVA, J. (ORAL) Petitioner impugns show cause for cancellation dated of cancellation dated 30.08.2023. Learned counsel for the petitioner submits that show cause 7 [‘the Act’] was itself defective as it did not give any details of IN THE HIGH COURT OF DELHI AT NEW DELHI Date of decision: 03.01.2024 W.P.(C) 16189/2023 & CM APPL. 65071/2023..... Petitioner..... Respondents Priyanka Goel, Advocates. Mr. Rajeev Aggarwal with Ms. Samridhi Vats, for cancellation dated Learned counsel for the petitioner submits that show cause 7 [‘the Act’] was itself defective as it did not give any details of
3. Learned counsel submits that show cause notice dated 18.04.2022 did not give any details, however, mentions that the de were enclosed and submits that what was enclosed with the show cause notice was a mere photograph of an unknown individual. He submits that revocation applications were filed, however, the same have been rejected by orders dated 27.04.2022 and 28.06. of which do not contain any reasons. Even order dated 30.08.2023 merely states that the reply of the petitioner has been examined but the same has not been found to be satisfactory for the reasons “the reason entered for revocation of cancell
4. Issue notice. Notice is accepted by learned counsel for the respondent. With the consent of learned counsel for parties, the petition is taken up for hearing today.
5. The show cause notice dated 18.04.2022 seeking cancellation of registration gives the following reasons: “Wrongful availment or utilization of Input Tax Credit (details notice enclosed).”
6. It is not disputed that what was enclosed with the show cause notice were not any details but a photograph of an individual, which appended to the petition at page 44.
7. The show cause notice contain any details quan Credit or any refund claimed on the said account or reasons. Reference Learned counsel submits that show cause notice dated 18.04.2022 did not give any details, however, mentions that the de have been rejected by orders dated 27.04.2022 and 28.06. entered for revocation of cancellation is not appropriate”. Issue notice. Notice is accepted by learned counsel for the petition is taken up for hearing today. The show cause notice dated 18.04.2022 seeking cancellation of egistration gives the following reasons:- (details notice enclosed).” It is not disputed that what was enclosed with the show cause notice were not any details but a photograph of an individual, which appended to the petition at page 44. The show cause notice ex facie is defected as the same does not contain any details quantum of wrongful availment of Input Tax or any refund claimed on the said account or reasons. Reference Learned counsel submits that show cause notice dated 18.04.2022 did not give any details, however, mentions that the details have been rejected by orders dated 27.04.2022 and 28.06.2023, and all ation is not appropriate”. Issue notice. Notice is accepted by learned counsel for the The show cause notice dated 18.04.2022 seeking cancellation of It is not disputed that what was enclosed with the show cause notice were not any details but a photograph of an individual, which is is defected as the same does not tum of wrongful availment of Input Tax or any refund claimed on the said account or reasons. Reference may be made to the Infinity Infomatic Pvt Ltd vs. CGST, Delhi (Del.)
8. Further, we may note that the order of cancellation of registration dated 18.04.2022 makes a reference to a reply of the petitioner dated 27.04.2022 and then states that no reply to show cause notice has been submitted. Further, order dated 28.06.2023 rejecting the application for revocation of cancellation also states that no reply has been received within time.
9. Neither the show cause revocation application contain any details or reasons. There is nothing available on record either in the show cause notice or the orders as to the alleged wrongful availment or utilization of input tax credit. On this ground alone, the show cause notice as well as the application seeking revocation are not sustainable.
10. The impugned order also seeks to cancel the registration with effect from 01.07.2017. There is no material on record to show as to why the registration no material to show that there was any wrongful availment or utilization of input tax credit effective from the date of registration till the issuance of the show cause notice.
11. In terms of Section 29(2) o Act, 2017, the proper officer may cancel the GST registration of a may be made to the judgment of a coordinate Bench of this Court in Infinity Infomatic Pvt Ltd vs. CGST, Delhi [2023 (11) CENTAX 263 Further, we may note that the order of cancellation of dated 27.04.2022 and then states that no reply to show cause has been received within time. Neither the show cause notice nor the orders rejecting the ground alone, the show cause notice as well as the application seeking revocation are not sustainable. The impugned order also seeks to cancel the registration with why the registration is sought to be cancelled retrospectively. There is the issuance of the show cause notice. In terms of Section 29(2) of the Central Goods and Services Tax judgment of a coordinate Bench of this Court in [2023 (11) CENTAX 263 Further, we may note that the order of cancellation of dated 27.04.2022 and then states that no reply to show cause notice nor the orders rejecting the ground alone, the show cause notice as well as the application The impugned order also seeks to cancel the registration with is sought to be cancelled retrospectively. There is f the Central Goods and Services Tax person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub satisfied. The regis mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. Merely, because a taxpayer has no returns for some period does not mean that the taxpayer’s registration is required to be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant.
12. It is important to note that, accor the consequences for cancelling a tax payer’s registration with retrospective effect is that the taxpayer’s customers are denied the input tax credit availed in respect of the supplies made by the tax payer during such period examine this aspect but assuming that the respondent’s contention in this regard is correct, it would follow that the proper officer is also required to consider this aspect while passing any order for cancellation of GST registration with retrospective effect. Thus, a taxpayer’s registration can be cancelled with retrospective effect only where such consequences are intended and are warranted.
13. Consequently, the show cause notice and the impugned orders are quashed being bereft of requisite is allowed. However, respondent is given liberty to initiate appropriate deem fit if the circumstances set out in the said sub satisfied. The registration cannot be cancelled with retrospective effect some objective criteria. Merely, because a taxpayer has no It is important to note that, according to the respondent, one of payer during such period. Although, we do not consider it apposite to tion of GST registration with retrospective effect. Thus, a Consequently, the show cause notice and the impugned orders shed being bereft of requisite details and reasons. The petition deem fit if the circumstances set out in the said sub-section are tration cannot be cancelled with retrospective effect some objective criteria. Merely, because a taxpayer has not filed the ding to the respondent, one of. Although, we do not consider it apposite to tion of GST registration with retrospective effect. Thus, a Consequently, the show cause notice and the impugned orders and reasons. The petition proceedings in accordance with law after giving a proper show cause notice containing complete details, if so advised
14. Petition is accordingly disposed of in the above terms. January 03, 2024 notice containing complete details, if so advised. Petition is accordingly disposed of in the above terms.
SANJEEV SACHDEVA, J RAVINDER DUDEJA, J