Delhi HC Permits Document Submission to prove Principal Business Place Amid GST Cancellation

MD Wazid Raza Vs Superintendent Range-108 Central Goods And Service Tax & Anr. (Delhi High Court)
In the case of MD Wazid Raza vs. Superintendent Range-108 Central Goods and Service Tax, the Delhi High Court addressed a petition seeking to revoke the suspension of the petitioner’s GST registration. The petitioner challenged a Show Cause Notice (SCN) issued on July 24, 2024, which proposed cancellation of GST registration due to allegations of fraud, willful misstatement, and a violation of Rule 86B. The SCN indicated that during a physical verification, the petitioner was found to be non-existent at the declared principal place of business. Although the petitioner responded to the SCN, no supporting documents were submitted to prove the operation of his business from the declared location. Recognizing this gap, the Court allowed the petitioner to submit relevant documents within one week to establish his business activity at the principal place. The respondents are required to consider these documents and provide an appropriate hearing before making a decision. The petition was subsequently disposed of, along with any pending applications.
 FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition, inter alia, praying that directions be issued to the respondents to revoke the suspension of the petitioner’s Goods and Services Tax (GST) registration. The petitioner, essentially, impugns the Show Cause Notice dated 24.07.2024 (hereafter the impugned SCN) whereby the petitioner was called upon to show cause as to why the petitioner’s GST registration not be cancelled. The impugned SCN, is reproduced as under:-
“Show Cause Notice for Cancellation of Registration
Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons:
1. Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts
2. Rule 21(g)-person violates the provision of rule 86B
Remarks:
During Physical verification, the taxpayer found non-existent on the declared principal place of business.
You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice.
You are hereby directed to appear before the undersigned authority on 02/08/2024 at 12:45. If you fail to furnish a reply within the stipulated date or fail to appear for personal hearing on the appointed date and time, the case will be decided ex parte on the basis of available records and on merits.
Please note that your registration stands suspended with effect from 24/07/2024.
Kindly refer the supportive document attached for case specific details- Not Applicable”’
2. Although, the reasons set out in the impugned SCN are not intelligible, however, the remarks indicate that during the physical verification, the petitioner was found to be non-existent at his declared principal place of business. The learned counsel for the respondent submits that this is the principal reason for proposing to cancel the petitioner’s GST registration.
3. The petitioner responded to the impugned SCN on 01.08.2024. However, the learned counsel for the respondent submitted that the petitioner has not annexed any documents to establish that he was carrying on his business from the principal place of business.
4. The copy of the reply filed by the petitioner is annexed to the present petition. It indicates that no supporting documents have been furnished by the petitioner.
5. In view of the above, we consider it apposite to permit the petitioner to furnish all such documents as are considered relevant to establish that he was functioning at his principal place of business, within the period of one week from date. The respondents are directed to consider the same and pass an appropriate order after affording the petitioner an opportunity to be heard.
6. The petition is disposed of in the aforesaid terms. Pending application also stands disposed of.