Polytec Industries Through Its Proprietor Mr.Rohit Gupta vs. The Commissioner Delhi Goods And Services Tax Trade And Tax Department And Ors

Facts

The petitioner, Polytec Industries, through its proprietor Mr. Rohit Gupta, challenged an order dated 13.12.2023 that disposed of Show Cause Notices dated 18.09.2023 and 29.09.2023, resulting in a demand against the petitioner. The petitioner's registration under GST was initially cancelled retrospectively. During this period, the petitioner could not access the GST portal to file a reply to the Show Cause Notices. Subsequently, the cancellation of registration was made prospective from the date of the Show Cause Notices by an order dated 24.01.2024, enabling the petitioner to access the portal.

Held

The Court held that since the petitioner was unable to upload a reply to the Show Cause Notices due to the retrospective cancellation of its registration, an opportunity should be granted to the petitioner to respond. Consequently, the impugned orders dated 13.12.2023 were set aside, and the proceedings were restored to the record of the Proper Officer. The petitioner was directed to upload a reply to the Show Cause Notices within one week from the date of the order, after which the Proper Officer was to adjudicate the notices in accordance with the law. All rights and contentions of the parties were reserved.

Key Issues

1. Whether the petitioner was denied a reasonable opportunity to respond to the Show Cause Notices due to the retrospective cancellation of its GST registration, thereby vitiating the impugned order dated 13.12.2023? The petitioner argued that the retrospective cancellation of its GST registration prevented it from accessing the GST portal and consequently from filing a reply to the Show Cause Notices. It contended that this procedural defect rendered the subsequent adjudication order invalid. The petitioner sought an opportunity to respond to the notices. The respondents' arguments are not recorded in the judgment.