Emphasizing that there is an ongoing festive season, and the Government has announced several steps to encourage businesses, the Delhi High Court opined that the Petitioner’s business would be irreparably prejudiced due to the suspension of the GST Registration, and therefore directed that the suspension shall be lifted within two working days.
While granting such relaxation, the High Court ordered the Petitioner to comply with all the requirements under the applicable Act and Rules, including filing of Returns and payment of tax.
The Division Bench comprising Justice Prathiba M Singh and Justice Shail Jain, however, refused to interfere in the show cause notice (SCN) proceedings, finding that the reply has already been filed and the SCN shall accordingly be adjudicated in accordance with law. The Bench also observed that the Petitioner has succeeded in all four SCNs in the past, and proceedings have been dropped.
Lastly, the Bench directed that after lifting the suspension within two working days from the date of this order, the Adjudicating authority shall pass the order afresh by 30 November 2025.
Briefly, in this case, a search was conducted at the premises of the Petitioner by DGGI, after which it was sealed and later de-sealed, as the proceedings pursuant to the SCN were dropped. Later, a fresh SCN was issued on the ground that the Petitioner has been availing and passing ITC without actually supplying goods. Even though the Petitioner argued that this very allegation was considered in earlier SCNs, without acceding to their contentions, their registration has also been suspended, leading to enormous injuries to their business and financial condition.
Appearances:
Advocates Harpreet Singh and Suresh Chaudhary, for the Petitioner/ Taxpayer
Advocate Urvi Mohan, for the Respondent/ Revenue
