BharatTaxGST

M/S Sp Safe Control Systems PVT. LTD. vs. Union Of INDIA & Anr.

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W.P.(C)/1729/2023HC DelhiGSTCNR DLHC01107476202322 February 2023Bench: HON'BLE MR. JUSTICE VIBHU BAKHRU,HON'BLE MR. JUSTICE AMIT MAHAJAN3 pages
For Petitioner: Mr. Arindam Mukherjee, AdvFor Respondent: Ms. Bakshi Vinita, Adv. for R1. Mr. Anurag Ojha, SSC with Mr. Kumar Abhishek, Adv
AI SummaryAllowed

Facts

The petitioner's GST registration was cancelled for non-filing of returns. A show cause notice was issued, but the personal hearing date fell on a national holiday. The petitioner filed returns before the cancellation order was passed.

Held

The cancellation of GST registration was in violation of the principles of natural justice as no proper personal hearing was afforded. The order cancelling registration is set aside, and registration is to be restored.

Key Issues

Whether the cancellation of GST registration was done in violation of principles of natural justice due to the lack of a proper personal hearing.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~38 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 1729/2023 & CM APPL. 6547/2023 M/S SP SAFE CONTROL SYSTEMS PVT. LTD. ..... Petitioner Through: Mr. Arindam Mukherjee, Adv. versus UNION OF INDIA & ANR. ..... Respondent Through: Ms. Bakshi Vinita, Adv. for R1. Mr. Anurag Ojha, SSC with Mr. Kumar Abhishek, Adv. CORAM: HON'BLE MR. JUSTICE VIBHU BAKHRU HON'BLE MR. JUSTICE AMIT MAHAJAN

O R D E R %

22.02.

2023

1.

The petitioner has filed the present petition challenging the order-in-appeal dated 24.01.2023 whereby the petitioner’s appeal challenging the revocation of GST registration (07 AANCS2588M2ZI) was rejected on the ground that the appeal was beyond the period of limitation.

2.

The reasons for cancellation of the petitioner’s GST registration is that he had not filed the returns for a period of six months. A show cause notice dated 02.09.2021 was issued to the petitioner calling upon it to show cause as to why its registration should not be cancelled. It is also important to note that the show cause notice dated 02.09.2021 called upon the petitioner to appear before the concerned officer on 02.10.2021 at 11 a.m.

3.

It is not disputed that the petitioner had immediately on receipt of the show cause notice, addressed the cause and filed the returns by 14.09.2021. The petitioner was of the view that 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 04/06/2026 at 04:06:13

since he had addressed the cause for which adverse action was proposed the same would not follow. Notwithstanding the above, the petitioner’s registration was cancelled by an order dated 15.02.2022. 4. It is relevant to note that no personal hearing was afforded to the petitioner as 02.10.2021 was a national holiday.

5.

In the given facts, it is clear that the order dated 15.02.2022 has been passed in violation of the principles of natural justice and is requires to be quashed.

6.

Mr. Ojha, learned counsel for the respondent submits that it would be necessary for the petitioner also to pay the outstanding interest to regularise his account with the GST authorities. He states that the notice dated 01.11.2022 was issued to the petitioner to pay an amount of ₹7,71,270/-. The learned counsel for the petitioner states that the petitioner has been attempting to pay the said amount but has been unsuccessful as the portal has not accepted any payment above ₹80,000/-, which the petitioner has paid. He also states that input tax credit in excess of ₹15,00,000/-, is lying in its register and the same can be utilised for the payment of any outstanding dues.

7.

The scope of the present petition is limited to the action of the respondents in cancelling the petitioner’s GST registration. It is, thus, not necessary for this Court to examine whether there has been any other default on the part of the petitioner or whether sufficient opportunity has been provided to the petitioner to rectify the same. Since it is apparent that the order dated 15.02.2022 cancelling the petitioner’s GST registration was passed in the violation of the principles of natural justice, the said order is liable to be set aside.

8.

In view of the above, the petition is allowed and the 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 04/06/2026 at 04:06:13

impugned order dated 15.02.2022 is set aside. The respondents are directed to forthwith restore the petitioner’s GST registration.

9.

It is clarified that this would not preclude the respondents from initiating any further action albeit in accordance with law.

VIBHU BAKHRU, J

AMIT MAHAJAN, J FEBRUARY 22, 2023 Ch

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 04/06/2026 at 04:06:13

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.