M/S. Balaji Trading Co. vs. The Commissioner & Anr.
Original PDF →Facts
The petitioner, M/s Balaji Trading Co., sought to quash a Show Cause Notice dated December 21, 2023, issued by the GST authorities. The notice proposed cancellation of the petitioner's GST registration due to the firm being found locked during a visit on December 20, 2023, and the proprietor's alleged failure to respond properly to a phone call. Local inquiry indicated the firm opened infrequently. The petitioner claims to have filed a detailed reply on December 22, 2023, but their GST registration was suspended and remained so. The respondents, represented by the Commissioner and another, accepted notice.
Held
The Court disposed of the petition by directing the proper officer to decide the Show Cause Notice dated December 21, 2023, in accordance with the law within a period of two weeks from the date of the order. This decision was made after giving the petitioner an opportunity for a personal hearing. The Court explicitly clarified that it had neither considered nor commented upon the merits of the contentions of either party, reserving all rights and contentions of both the petitioner and the respondents. The Court did not address the question of whether the Show Cause Notice was liable to be quashed, but rather directed its adjudication.
Key Issues
1. Whether the Show Cause Notice dated December 21, 2023, proposing cancellation of GST registration, is liable to be quashed on the grounds that the petitioner's reply dated December 22, 2023, was not considered and the registration remains suspended. (Question of law and fact, potentially relating to principles of natural justice and procedural fairness). Petitioner's Contention: The petitioner argued that their detailed reply to the Show Cause Notice was not considered, and their GST registration has been suspended without proper adjudication. They sought the quashing of the notice and the lifting of the suspension. Respondents' Contention: The respondents, through their counsel, submitted that the Show Cause Notice would be adjudicated within two weeks from the date of the hearing.
Sections Cited
Not specified in the judgment
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
JUDGMENT SANJEEV SACHDEVA, J. (ORAL)
Petitioner seeks quashing of Show Cause Notice dated 21.12.2023, whereby the petitioner was called upon to show cause as to why the GST registration be not cancelled for the following reasons: “Firm was found locked at the time of visit of GSTI on 20.12.2023. The GSTI (FFC) has also made a phone call but the proprietor failed to respond properly and local enquiry conducted by GSTI reveals that firm opens once in 10-12 days.”
Issue notice. Notice is accepted by learned counsel appearing for respondent. With the consent of the parties, petition is taken up for final disposal today.
Petitioner was a proprietor of M/s Balaji Trading Co. and W.P. (C) 5169/2024 possessed GST registration.
Learned Counsel for Petitioner submits that Petitioner had filed a detailed reply dated 22.12.2023 to said Show Cause Notice. However, the said reply has not been considered and the GST registration of the Petitioner has been suspended and remains in suspension since.
Per Contra Learned counsel for respondents under instructions submits that the Show Cause Notice shall be adjudicated within a period of two weeks from today.
In view of the above, the petition is disposed of directing the proper officer to decide the Show Cause Notice dated 21.12.2023 in accordance with law within a period of two weeks after giving an opportunity of personal hearing to the petitioner.
It is clarified that this Court has neither considered nor commented upon the merits of the contentions of either party. All rights and contentions of parties are reserved. SANJEEV SACHDEVA, J RAVINDER DUDEJA, J APRIL 10, 2024/sk
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.