Singla Enterprises Through Its Proprietor Mr Shiv Kumar Singhal vs. Commissioner Delhi Goods And Service Tax And Others

Facts

The petitioner, Singla Enterprises, through its proprietor Mr. Shiv Kumar Singhal, challenged an order dated 22.12.2023, which disposed of a show cause notice dated 23.09.2023 and raised a demand of Rs. 36,63,454.00, including penalty, under Section 73 of the Central Goods and Services Tax Act, 2017. The petitioner contended that they could not file a reply to the show cause notice because their GST registration had been cancelled retrospectively, preventing access to the portal. The respondents conceded this point, and screenshots showed a blank dropdown menu for assessment years. The impugned order stated that the demand was created ex-parte as the taxpayer neither filed a reply nor appeared for a personal hearing, despite repeated opportunities, including a reminder through the GST portal.

Held

The Court held that the impugned order dated 22.12.2023, which was passed solely on the ground that the petitioner had not filed a reply, could not be sustained. The reasoning was that the petitioner was unable to access the show cause notice or reply to it due to the retrospective cancellation of their GST registration. The Court found that the respondents conceded this factual position, and the petitioner's inability to access the portal was supported by evidence. Therefore, the matter was liable to be remitted to the Proper Officer for re-adjudication. The impugned order was set aside, and the matter was remitted. The petitioner was directed to file a reply to the show cause notice within two weeks, after which the Proper Officer was to re-adjudicate after providing an opportunity for a personal hearing and passing a fresh speaking order within the period prescribed under Section 75(3) of the Act. The Court clarified that it had not commented on the merits of the contentions of either party.

Key Issues

1. Whether the impugned order dated 22.12.2023, passed under Section 73 of the Central Goods and Services Tax Act, 2017, is sustainable when the petitioner was unable to access the GST portal to file a reply to the show cause notice due to retrospective cancellation of their registration? Petitioner's Contention: The petitioner argued that the retrospective cancellation of their GST registration prevented them from accessing the portal and consequently from filing a reply to the show cause notice. They relied on the fact that the portal did not allow access, as evidenced by screenshots showing a blank assessment year dropdown. Respondent's Contention: The respondent conceded that once registration is cancelled, a taxpayer cannot access the portal. The impugned order was passed ex-parte on the ground that no reply was filed.