Full Text
HIGH COURT OF DELHI
Date of Decision: 25th September, 2023
TOOL TECH ENTERPRISES ..... Petitioner
Through: Mr. Puneet Agrawal and Mr. Yuvraj Singh, Advs.
Through: Mr. Atul Tripathi, SSC with Mr. V.K. Attri, Adv.
Mr. Yuvraj Singh & Mr. Chetan Kumar Shukla, Advs.
HON'BLE MR. JUSTICE AMIT MAHAJAN VIBHU BAKHRU, J.
JUDGMENT
1. The petitioner has filed the present petition, inter alia, praying that directions be issued to the respondent to restore its GST registration.
2. The petitioner impugns an order (Order-in-Appeal 45/ADC/Central Tax/Appeal-1/Delhi/2023) dated 21.02.2023 (hereafter ‘impugned order’) passed by the appellate authority, whereby the petitioner’s appeal against an order rejecting his application for revocation of cancellation of his registration was rejected.
3. The petitioner carries his business as the sole proprietor of a concern named, Tool Tech Enterprises. His principal place of business is located in Khasra No. 633, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi-110042.
4. The petitioner obtained registration with the GST authorities (GSTIN 07APBPK8281R2Z[4]) on 15.09.2017.
5. A Show Cause Notice dated 17.05.2022 (hereafter ‘the impugned SCN’) was addressed to the petitioner at Khasra No. 663, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi-110042 instead of Khasra No. 633, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi-110042, proposing to cancel his GST registration for the following reasons: “Non compliance of any specified provisions in the GST Act or the Rules made thereunder as may be prescribed.”
6. It is the petitioner’s case that the impugned SCN was sent to an incorrect address, as his address is Khasra No. 633, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi- 110042 (hereafter KH No. 633) and not Khasra No. 663 Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi- 110042 (hereafter KH No 663).
7. As is also apparent from the above, the impugned SCN was defective as it did not specify any reason, proposing to cancel the petitioner’s GST registration.
8. Thereafter, by an order dated 06.06.2022, the petitioner’s GST registration was cancelled.
9. The said order does not indicate any reason for cancelling the petitioner’s GST registration except for recording that the petitioner had not responded to the impugned SCN and had not appeared before the proper officer. The tabular statement as set out in the said order dated 06.06.2022 discloses that there were no ascertained tax dues payable by the petitioner.
10. The impugned order was also addressed at the incorrect address.
11. Thereafter, the petitioner filed an application dated 20.06.2022 seeking revocation of cancellation of its registration number.
12. Apparently, the real reason for cancellation of the petitioner’s GST registration was a doubt as to whether the petitioner was carrying on its business from the principal place of business.
13. A physical verification of the registered place of business was carried out, however, this was also carried out at KH No. 663, which was available on the records of GST authorities and not, KH No. 633.
14. The petitioner states that he is not highly educated and, therefore, an error had crept in while keying in his address on the GST portal.
15. On account of an inadvertent mistake of punching in his address as KH No. 663 (Khasra No. 663, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi-110042) instead of HH NO. 633 (Khasra No. 633, Ground Floor, Near Bajrang Dharam Kanta, Siraspur, Northwest Delhi, Delhi-110042), the proper officer had proceeded on the basis of the petitioner, being, non-existent.
16. After the premises of the petitioner were verified, a Show Cause Notice dated 12.07.2022 was issued, proposing to reject the petitioner’s application for revocation of cancellation of its registration.
17. Thereafter, the petitioner’s application seeking revocation of cancellation of its registration was rejected by an order dated 04.08.2022.
18. Being aggrieved by the said decision, the petitioner filed an appeal under Section 107(1) of the Central Goods and Services Tax Act, 2017. The petitioner also filed a writ petition before this Court, W.P.(C) 1631/2023 captioned as Tool Tech Enterprises v. Assitant Commissioner Ward 71, Zone 6 GST Division New Delhi & Ors..
19. The aforesaid writ petition was taken up for hearing on 08.02.2023. Considering that the petitioner had already availed an alternate remedy of filing an appeal against the order of the adjudicating authority, rejecting his application for revocation of cancellation of GST registration; this court disposed of the said petition with a request to the appellate authority to consider the petitioner’s case as expeditiously as possible.
20. The appellate authority has rejected the petitioner’s appeal by the impugned order.
21. One of the grounds urged by the petitioner before the appellate authority was that the impugned SCN proposing to cancel his GST registration was flawed as it did not disclose any specific reason for cancellation of its GST registration. However, the said contention was not examined. The appellate authority found that the petitioner’s appeal was filed beyond the period of limitation and that the petitioner was not found present on physical verification of the registered business premises of the appellant. The impugned order records that the Officers had also proceeded for physical verification of the address (KH No. 633) which, according to the petitioner, was his correct address but had found a firm in the name of M/s SK Engineering Works functioning at the said premises.
22. According to the petitioner, M/s SK Engineering Works is located on the first floor of Khasra No. 633, while his premises is at the ground floor.
23. In view of the above, this Court had granted time for the respondents to once again physically verify the petitioner’s claim that he carries on business from his principal place of business at Khasra No. 633.
24. Mr. Atul Tripathi, learned counsel appearing for the respondent, submits that further re-verification will be carried out and the petition may be disposed of.
25. Since the impugned SCN did not disclose the reason why the petitioner’s GST registration was proposed to be cancelled, the order dated 06.06.2022 passed pursuant to the same is void as it was passed in violation of the principles of natural justice. The said order is also not informed by reason. In view of the above, this court considers it apposite to allow present petition.
26. The impugned order dated 21.02.2023 as well as the Order-in- Original dated 04.08.2022, passed by the adjudicating authority are set aside. The order dated 06.06.2022, whereby the petitioner’s GST registration was cancelled is also set aside. The respondents are directed to restore the petitioner’s GST registration from the date as initially granted.
27. It is clarified that this order would not preclude the respondents from instituting any other proceedings if it is found that the petitioner has violated any provisions of the Act or the Rules or has not discharged any of its liabilities.
28. The petition is disposed of with the aforesaid observations.
VIBHU BAKHRU, J AMIT MAHAJAN, J SEPTEMBER 25, 2023 “SS”