Hanuman Enterprises vs. The Commissioner, Delhi Goods And Service Tax & Others
(Delhi High Court, Delhi)

Case Law
Petitioner / Applicant
Hanuman Enterprises
The Commissioner, Delhi Goods And Service Tax & Others
Delhi High Court
Feb 17, 2023
Order No.
W.P.(C) 2094/2023& CM No.7944/2023
TR Citation
2023 (2) TR 7022
Related HSN Chapter/s
Related HSN Code



1. Issue notice.

2. Mr. Rajeev Aggarwal, learned counsel appearing for the respondents, accepts notice.

3. The petitioner has filed the present petition impugning an order dated 19.07.2022 passed by the Sales Tax Officer, Class-II/ AVATO, Ward-66, whereby the petitioner’s GSTIN / Unique ID 07AAECH9196D1ZC was cancelled. Apart from the other grounds, the petitioner also assails the said order on the ground that the same has been passed in violation of the principles of natural justice.

4. The petitioner contends that it was not provided sufficient opportunity to meet the allegations, on the basis of which the petitioner’s aforesaid registration was cancelled, as the show cause notice neither disclosed any reason, nor does it enclosed any material which would indicate the reasons for the proposed action.

5. The petitioner was issued a show cause notice dated 25.04.2022 and the only reason stated for proposing the cancellation of the petitioner’s registration read as “Firm suspended under Section 29(2)(a) of CGST Act 2017 or Delhi SGST Act”.

6. It is at once clear that the show cause notice dated 25.04.2022 is bereft of any reason which is capable of eliciting any meaningful response from the petitioner.

7. It is trite law that the show cause notice must indicate the reasons for an adverse order or action proposed to be taken. The object of the show cause notice is to enable the noticee to effectively respond to the allegations / reasons for which such adverse order / action is proposed. The show cause notice dated 25.04.2022 is vague and does not fulfil the fundamental requisites of a show cause notice.

8. Mr. Aggarwal, learned counsel appearing for the respondents does not dispute that the show cause notice is bereft of any reason. He however states that the show cause notice was issued in compliance of a communication dated 29.03.2022, received from the Directorate General of Goods & Service Tax Intelligence, Chennai Zone Unit, requesting the Commissioner, SGST to cancel the petitioner’s registration, pending the investigation by the office to prevent any loss to the exchequer. The respondents were also requested to put on hold and/or suspend the processing of any refund claim filed by the petitioner.

9. Mr. Aggarwal has handed over a copy of the communication dated 29.03.2022 to us in the Court. A copy of the same has also been given to the learned counsel appearing for the petitioner.

10. Mr. Aggarwal, reiterates that the aforesaid communication is the only reason why the petitioner’s registration has been cancelled.

11. At this stage, we do not consider it apposite to examine whether the petitioner’s GSTN registration could be cancelled for the reason stated in the communication dated 29.03.2022 and for that matter, whether the petitioner’s claim for refund could be suspended solely on the basis of the said communication. Suffice it to note, that the petitioner was not provided a sufficient opportunity to counter the aforesaid reasons and present its case before the concerned officer.

12. In view of the above, the impugned order dated 19.07.2022 is set aside and the matter is remanded back to the Adjudicating Authority to consider afresh.

13. The petitioner is at liberty to file its response within one week from today to the show cause notice dated 25.04.2022, considering that the contents of the letter dated 29.03.2022 are the sole reasons for which the petitioner’s registration is proposed to be cancelled.

14. The concerned Adjudicating Authority shall consider the petitioner’s response and pass an order after affording the petitioner an opportunity to be heard.

15. It is once again clarified that this Court has not examined any of the other grounds as stated in the petition or the merits of the allegations made in the communication dated 29.03.2022. This court has also not examined the question whether the petitioner’s registration could be cancelled on the basis of reason as stated in the communication dated 29.03.2022.

16. All rights and contentions of the parties are reserved.

17. The petition is allowed in the aforesaid terms.

18. The Registry is directed to place a scanned copy of the communication dated 29.03.2022, handed over in the Court, on record.

19. Pending application is also disposed of.

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