Ms Tradix Solution vs. The Prinicipal Commissioner CGST & Anr.

Facts

The petitioner, MS Tradix Solution, filed a writ petition before the Delhi High Court challenging the issuance of a Show Cause Notice (SCN) dated 31 July 2024. This SCN alleged a violation of Section 29(2)(e) of the Central Goods & Services Tax Act, 2017 (CGST Act), and resulted in the suspension of the petitioner's GST registration from the same date. The petitioner claims to have submitted a detailed response to the SCN on 08 August 2024, but the proceedings remained unconcluded. The respondents, represented by the Principal Commissioner CGST & ANR., stated that a personal hearing was scheduled for 06 February 2025 and assured that efforts would be made to conclude the proceedings within two weeks thereafter.

Held

The Court took note of the grievance raised by the petitioner regarding the delay in concluding the proceedings initiated by the Show Cause Notice (SCN) dated 31 July 2024, which alleged a violation of Section 29(2)(e) of the CGST Act and led to the suspension of the petitioner's registration. The respondents, represented by learned counsel, made a statement that a date of 06 February 2025 had been fixed for a personal hearing and that efforts would be made to conclude the proceedings within two weeks from that date. The Court recorded and accepted this statement. Consequently, the writ petition was disposed of on these terms, with the operative direction being the conclusion of the proceedings within the stipulated timeframe.

Key Issues

1. Whether the delay in concluding the proceedings initiated by the Show Cause Notice dated 31 July 2024, alleging violation of Section 29(2)(e) of the CGST Act, is justified, and if not, what relief should be granted to the petitioner whose GST registration stands suspended? Petitioner's contention: The petitioner argued that despite furnishing a detailed response to the SCN on 08 August 2024, the proceedings have not been concluded, leading to an undue delay and continued suspension of their GST registration. Respondents' contention: The respondents, through their counsel, stated that a date for personal hearing has been fixed for 06 February 2025 and assured that all efforts would be made to conclude the pending proceedings within two weeks from that date.