M/S Hd Enterprises vs. Sales Tax Officer Class Ii/ Avato
Original PDF →Facts
The petitioner, M/s HD Enterprises, filed a writ petition before the Delhi High Court challenging the final order dated 08 March 2024, passed by the Sales Tax Officer Class II/AVATO. This order rejected the petitioner's application for revocation of its GST registration. The rejection followed a Show Cause Notice (SCN) dated 29 January 2024, which directed the petitioner to upload supporting documents. The petitioner admits to failing to respond to this SCN. The Court noted the petitioner's failure to respond to the SCN and the subsequent rejection order.
Held
The Court found no ground to interfere with the final order dated 08 March 2024, acknowledging the petitioner's failure to respond to the Show Cause Notice. However, the Court, in its discretion, decided to dispose of the writ petition on specific terms. The petitioner was granted one week from the date of the order to furnish a response to the SCN dated 29 January 2024 and upload all statutorily required documentation for a registration revocation application. Upon compliance, the competent authority was directed to examine the application afresh and pass an appropriate decision in accordance with the law. The order dated 08 March 2024 would be subject to this fresh decision. The respondent was also directed to provide an opportunity for a personal hearing if sought by the petitioner. The core principle is that while procedural lapses can lead to adverse orders, the Court may grant an opportunity to cure such lapses, especially when a fresh decision is to be taken by the authority.
Key Issues
1. Whether the final order dated 08 March 2024, rejecting the petitioner's application for revocation of GST registration, is sustainable in light of the petitioner's failure to respond to the Show Cause Notice dated 29 January 2024, as per the provisions of the Central Goods and Services Tax Act, 2017. Petitioner's Contention: The petitioner, through its counsel, did not explicitly argue against the validity of the order but sought an opportunity to rectify the procedural lapse. Respondent's Contention: The respondent, through its counsel, relied on the fact that the petitioner failed to respond to the SCN, which led to the rejection of the revocation application.
Sections Cited
Central Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2024 CM APPL. 61784/2024 (exemption) Allowed, subject to all just exceptions. This application stands disposed of.
W.P.(C) 14697/2024 & CM APPL. 61783/2024 (interim relief)
The petitioner is aggrieved by the final order of 08 March 2024 pursuant to which the respondent has proceeded to reject its application for revocation of registration under the Central Goods and Services Tax Act, 2017. 2. The aforesaid order was preceded by the issuance of Show Cause Notice [‘SCN’] dated 29 January 2024 and which had called upon the petitioner to upload all supporting documents. Admittedly, there was a failure on the part of the writ petitioner to respond to the aforesaid SCN. This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 22:43:45
In view of the aforesaid and while we consequently find no ground to interfere with the final order of 08 March 2024, we are of the opinion that the writ petition would merit disposal on the following terms.
The petitioner may, within a period of one week from today, furnish a response to the SCN dated 29 January 2024 and upload all documentation that may be statutorily required to accompany any application made seeking revocation of registration.
Subject to compliance with the aforesaid, the competent authority may duly examine the aforesaid application and take an appropriate decision in accordance with law. The order dated 08 March 2024 shall abide by the fresh decision that the respondent shall now take pursuant to the directions issued hereinabove.
The respondent may also provide an opportunity of personal hearing to the writ petitioner, if so sought. YASHWANT VARMA, J. RAVINDER DUDEJA, J. OCTOBER 21, 2024/vp This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 03/07/2025 at 22:43:45
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.