Case: Euro PVC Fabric Vs Principal Commissioner of Goods and Services Tax (Delhi High Court) (W.P.(C) 349/2024)
Facts
- Vide order dated 18.01.2021, whereby the GST registration of the taxpayer has been cancelled with effect from 31.12.2020.
- By the show cause notice dated 29.04.2020, petitioner was called upon to show cause as to why registration be not cancelled for the reason that the returns have not been filed for a period of continuous 6 months.
- The taxpayer was required to furnish a reply within the stipulated time and failing which the case would be decided ex-parte.
- However, on perusal of the SCN showed that the same did not contain any date or time or venue where the taxpayer had to appear in response to the show cause notice.
- Subsequently, the order was passed cancelling the registration. The order contained just the numerical value “1” instead of any reasons, on account of which the registration was being cancelled.
- Interestingly, the cancellation order also refers to the reply as received from the taxpayer, whereas the reply was never filed by the taxpayer. (owing to which the department issued ex-parte order).
Held
- The court held that order dated 18.10.2021 is not sustainable for the reason that the order clearly demonstrated non-application of mind by the concerned Superintendent, who passed the order.
- The Court further observed that they are flooded with petitions where there is similar system generated order which ex facie demonstrate non-application of mind.
- The GST registration of the petitioner is restored.