M/S Nobel Enterprises vs. The Superintendent Of Central Tax

Held

The Court held that cancellation of registration under Section 29(2)(e) on the ground of the enterprise being fake requires physical verification of the business premises as contemplated under Rule 25 of the CGST Rules. Since no such verification was done, the Show Cause Notice and the cancellation order were quashed, with liberty for the authorities to conduct a physical verification for further action.

Facts

The petitioner's GST registration was cancelled based on a Show Cause Notice stating the enterprise was identified as 'fake' in a list prepared by the Principal Chief Commissioner's Office. The petitioner's response referred to ongoing proceedings by State Authorities, but no physical verification of the business premises was conducted before the cancellation order was issued.

Key Issues

Whether GST registration can be cancelled on the ground of the enterprise being 'fake' based solely on a list from a higher authority without conducting a physical verification of the business premises as required by Rule 25 of the CGST Rules.