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Cancelling GSTIN without Providing a Reason is Not a Viable Solution

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Cancelling GSTIN without Providing a Reason is Not a Viable Solution
Delhi High Court's Order for M/s. Singla Exports

Within the case of Singla Exports v. Central Board of Oblique Taxes and Customs & Ors [W.P.(C) 2732 of 2023 dated August 09, 2023], the Delhi Excessive Court docket overruled the order of the cancellation of the GST registration resulting from insufficient causes within the auto-generated order.

Fundamental Details:

The petitioner, M/s. Singla Exports determined to stop enterprise operations and utilized to cancel its GST registration, efficient from April 30, 2022.

The Income Division issued a Present Trigger Discover (SCN) dated Could 05, 2022 (“the Impugned SCN”) to the Petitioner, requesting paperwork and particulars.

The Income Division didn’t course of the Petitioner’s utility, as the suitable response had not been supplied by them regarding the Impugned SCN asking for additional info.

Subsequently, the Income Division issued an order dated June 10, 2022 (“the Impugned Order”) cancelling the Petitioner’s GST Registration, efficient from July 02, 2017.

The Petitioner challenged the Impugned Order by submitting a writ earlier than the Delhi Excessive Court docket.

What’s the Subject:

Is it beneath the legislation to cancel GST registration with out giving correct causes within the cancellation order?

Delhi Excessive Court docket Dominated:

In W.P.(C) 2732 of 2023, the Delhi Excessive Court docket dominated as follows:

Acknowledged that it’s a settled legislation for an SCN to stipulate causes for any actions, asking the petitioner to reply.

The courtroom noticed that the Impugned Present Trigger Discover (SCN) couldn’t present an applicable response. Consequently, the Impugned order primarily based on insufficient causes, SCN couldn’t be sustained on the identical grounds. The one cause acknowledged within the Impugned order for cancelling the Petitioner’s GST registration was their failure to reply to the Impugned SCN and never attend a private listening to.

Famous that the impugned order didn’t clarify the alleged statutory violations ensuing within the cancellation of the GST registration, and it wasn’t undisputed that the Petitioner acquired a discover of a private listening to.

Nullified the Impugned Order of GST registration cancellation.

The Court docket instructed the GST Income Division to overview the case. The Petitioner was ordered to submit paperwork in response to the Could 17, 2022 SCN inside two weeks.

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