M/S Slg Trading Co (Through Its Proprietor Salman) vs. Sales Tax Officer Class Ii/ Avato
Original PDF →Facts
The petitioner, M/s SLG Trading Co., through its proprietor Salman, filed a writ petition seeking to quash a show cause notice dated 24.11.2023. The notice proposed the cancellation of the petitioner's GST registration on the grounds that the petitioner does not exist at the stated premises. The petitioner explained that they had shifted their business to the said premises after acquiring them on rent. The officer's visit occurred when the petitioner was not available. The petitioner requested a revisit. The respondent's counsel acknowledged that the show cause notice was pending adjudication and that the petitioner was not found at the premises during a surprise visit, for which no prior notice was issued.
Held
The Court held that the show cause notice was still pending before the proper officer. The Court directed the proper officer to adjudicate the show cause notice within 30 days. Crucially, the Court mandated that the adjudication must include an opportunity for a personal hearing for the petitioner. Furthermore, the proper officer was instructed to conduct a fresh visit to the petitioner's premises to ascertain their existence there before passing a final order. This approach ensures procedural fairness and allows the petitioner to present their case and demonstrate their continued operation at the registered address. The Court did not decide on the merits of the cancellation itself but focused on the procedural steps required.
Key Issues
1. Whether the proposed cancellation of GST registration on the ground of non-existence at the premises, without a prior notice of visit and without affording a personal hearing, is legally sustainable? (Mixed question of law and fact, concerning principles of natural justice and procedural fairness under GST law). Contentions: Petitioner: Argued that the cancellation was proposed based on a single visit where the petitioner was unavailable, and a fresh visit was requested. The petitioner sought an opportunity for a personal hearing and a fresh assessment of their presence at the premises. Respondent: Submitted that the show cause notice was pending adjudication and that the petitioner was indeed not found functioning at the premises during a surprise visit. The respondent conceded that no prior notice was issued for this visit.
Sections Cited
None explicitly mentioned
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 24.11.2023, whereby the GST registration of the petitioner is proposed to be cancelled.
Learned counsel for petitioner submits that proposed ground of cancellation is that the petitioner does not exist at the said premises. He submits that petitioner was earlier functioning from a different address and subsequently acquired the said premises on rent and shifted his business. He submits that when the officer visited the premises, petitioner was not found available and in his reply, he W.P. (C) 5269/2024 requested the said officer to revisit the premises.
Issue notice. Notice is accepted by learned counsel for respondent. With the consent of learned counsel for parties, petition is taken up for final disposal.
Learned counsel for respondent submits that show cause notice is still pending adjudication and the petitioner was not found functioning at the subject premises. He further concedes that no notice was issued prior to visit and it was a surprise visit.
In view of the fact that show cause notice is pending consideration before the proper officer, we dispose of the present petition directing the proper officer to adjudicate the show cause notice within 30 days after giving an opportunity of personal hearing to the petitioner. The proper officer shall also conduct a fresh visit to the said premises to ascertain the existence of petitioner at the said premises prior to passing a final order. SANJEEV SACHDEVA, J RAVINDER DUDEJA, J APRIL 10, 2024/vp
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.