GST UPDATE

???? Desk of CA. Praveen Sharma Series-569????

DELHI HIGH COURT IN THE CASE OF Nutech Appliances Section 29 of the CGST Act, 2017

?In this case, the petitioner challenged the cancellation of their GST registration, which was done with retrospective effect from 22.04.2018. The cancellation was based on a Show Cause Notice (SCN) that vaguely cited fraud, misstatement, or suppression of facts but did not provide specific details. 

?The petitioner applied for revocation of the cancellation, but the application was rejected, with the requirement to provide KYC documents and obtain a No Objection Certificate (NOC) from the Anti Evasion branch of CGST Delhi North.

?The court found that the SCN lacked sufficient details, making it impossible for the petitioner to respond meaningfully. The subsequent order cancelling the GST registration also lacked necessary particulars and did not propose retrospective cancellation. 

?The court held that both the SCN and the cancellation order violated principles of natural justice and set them aside. The GST registration of the petitioner was ordered to be restored, though the court clarified that this would not prevent the authorities from initiating lawful proceedings in the future.

CA. Praveen Sharma

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