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Cancellation of GSTIN Once Re-activated with the Duplicate Reason is Invalid

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Cancellation of GSTIN Once Re-activated with the Duplicate Reason is Invalid
Delhi HC's Order for M/S Samayshristi Enterprises

The Delhi Excessive Court docket has dominated that the Items and Service Tax (GST) registration cancellation, as soon as reversed on the identical grounds, isn’t legally legitimate.

The petitioner within the case, M/S Samayshristi Enterprises, questioned the choice taken by the respondent, which cancelled their GST registration efficient from the registration date, 20.03.2021. The cancellation order was primarily based on a Present Trigger Discover (SCN) dated 18.09.2023, the place the respondent alleged that the petitioner obtained registration in a fraudulent method, wilful misstatement, or concealing details.

The petitioner was given seven working days to be ready to provide a response to the SCN and was required to current earlier than the officer on 25.09.2023. Moreover, the petitioner’s GST registration was suspended from the date of the SCN, i.e., 18.09.2023.

Learn Additionally: Delhi HC: GSTIN Cancellation Initially from Date It Was Given Resulting from Non-filing of GST Return for six Month is Invalid

The SCN didn’t specify the precise grounds for initiating the cancellation of the petitioner’s GST registration. Despite the fact that it talked about allegations of fraud, wilful misstatement, or suppression of details, it didn’t furnish any particulars regarding the particular fraudulent exercise or misstatement introduced by the petitioner.

The allegations of suppressed details by the petitioner weren’t clarified within the SCN. In accordance with established authorized ideas, a present trigger discover ought to clearly handle the allegations forming the idea for antagonistic motion. On this case, the contended order solely referred to the SCN with out offering additional particulars.

The petitioner had utilized for the revocation of the cancellation of their GST registration in accordance with a round dated 31.03.2023. The appliance was permitted, and the petitioner’s GST registration cancellation was reversed by way of an order dated 16.09.2023.

A panel consisting of Justice Vibhu Bakhru and Justice Amit Mahajan emphasised that when the petitioner’s GST registration cancellation was reversed, following its earlier cancellation attributable to allegations of fraud, misstatement, or suppression of details, it was not permissible for the respondent to cancel the registration once more for a similar grounds until new grounds arose after the preliminary cancellation on 30.09.2021.

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