GST Dept Refused to Update Current Place of Business: Delhi HC Directs to File Revocation Application of GST Cancellation [Read Order]

The Delhi High Court directed the assesse to file a revocation application of Cancellation of Goods and Service Tax (GST)as the GST department refused to update the current place of business due to which the Registration under GST got cancelled.  The petitioner Kordient Ventures Pvt Ltd challenged the order (‘the impugned order’) cancelling the petitioner’s GST registration. The petitioner was issued the SCN proposing to cancel the petitioner’s GST registration for the reason that it was not found functioning/existing at its principal place of business. The petitioner was directed to furnish a reply to the SCN and also appear before the concerned officer at the appointed date and time, but no such date or time was specified.

The petitioner’s GST registration was also suspended with effect from 09.09.2022. The petitioner stated that it had changed its place of business and had duly applied for the same on 23.10.2020. The said application is not on record. However, under the said application, the Proper Officer had issued a Show Cause Notice proposing to reject the same. It was argued that the petitioner’s application for adding/amending the place of business was rejected without disclosing any reasons for the same. Further argued that the SCN was issued before the field visit which was conducted on 06.12.2022.

The report of the said field visit indicates that the petitioner’s Manager was present at the premises, but the petitioner was not functioning from the principal place of business. It was evident that the petitioner’s registration had been cancelled as the respondents had not permitted the petitioner to update the records to reflect its current place of business.

A division bench of Justice Vibhu Bakhru and Justice Amit Mahajan disposed of the petition by permitting the petitioner to apply for revocation of cancellation of its GST registration, and also substantiate that it is carrying on its business from another premises. “If the said application for revocation of cancellation of GST registration is filed within two weeks from today alongwith the relevant documents, the Proper Officer shall consider the same and pass a speaking order within one week from the said date, uninfluenced by the previous order(s). “, the bench held.

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