In a recent case, the division bench of the Delhi High Court observed that the failure to dispatch form GST REG 31 to the assessee violates the right to take appropriate remedy against GST cancellation. The court set aside the impugned show cause notice as well as Form GST REG 31. Rajkumar Singhal, the petitioner submitted that the subject Show Cause Notice is defective for the reason it does not mention the name and designation of the concerned officer who has issued the same.
It was contended that there is reference to certain supportive documents attached, however, there is no attachment to the Show Cause Notice and there is no indication as to where the petitioner will find the supportive documents. Counsel for petitioner submitted that the Show Cause Notice has not been signed by the proper officer but bears the digital signatures of the Goods and Service Tax Network. Counsel for the petitioner prayed for the deletion of respondent No.3 from the array of parties. Accordingly, respondent No.3 is deleted from the array of parties. Amended memo of parties be filed within two days.
The Counsel for the respondents submitted that Form GST REG 31 dated 19.02.2024 was physically dispatched to the petitioner on 20.02.2024, calling upon the petitioner to submit a reply within 30 days of receipt of the notice. A copy of the Form GST REG 31 dated 19.02.2024 has been produced in Court. It was stated that the petitioner has not received the Form GST REG 31 and reserves his right to take appropriate remedy against the same. The show cause notice shows that the same has been issued on the ground that registration has been obtained using fraud, willful misstatement or suppressing of facts.
The notice is unclear as to which of the grounds applies i.e. fraud, willful misstatement or suppressing of facts. The notice neither bears the name and designation nor the signatures of the issuing authority. The Court noted that Rule 21A of the Central Goods and Services Tax Act, 2017, requires that the person who is alleged to be in contravention shall be intimated in Form GST REG 31 electronically on the common portal or by sending the communication to the e-mail address provided at the time of registration or as amended from time to time. Form GST REG 31 admittedly has not been uploaded on the portal or sent electronically over e-mail to the petitioner but is stated to have been sent to the petitioner by physical mail, which cannot be a mode of service, as prescribed under Rule 21A.
In any event, the Form that has been produced in Court is not the show cause notice, which was sent to the petitioner. The court comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja set aside the impugned show cause notice as well as Form GST REG 31. It was, however, clarified that it would be open to the respondents to issue a proper show cause notice to the petitioner by law in case there is any infraction, and if issued, the same be disposed of in accordance with law after giving an opportunity of personal hearing to the petitioner.