GST Registration not to be cancelled based on incorrect field visit report

[CA Bimal Jain]

The Hon’ble Delhi High Court in the case of GULAB NAGAR VERSUS ASSISTANT COMMISSIONER WARD-26, STATE GOODS AND SERVICE TAX & ANR.  - 2024 (4) TMI 104 - DELHI HIGH COURT disposed of the writ petition thereby holding that, revocation application filed by the Assessee has to be taken into consideration in case where the GST Registration has been cancelled by the Revenue Department based on incorrect field visit report.

Facts:

Gulab Nagar (“the Petitioner”) filed a writ petition against order dated September 01, 2023 (“the Impugned Order”) passed by the Revenue Department (“the Respondent”) wherein the Petitioner GST registration has been cancelled retrospectively with effect from March 31, 2022, on the ground that Petitioner was not functioning from the address provided to GST authorities.

Held:

The Hon’ble High Court of Delhi in GULAB NAGAR VERSUS ASSISTANT COMMISSIONER WARD-26, STATE GOODS AND SERVICE TAX & ANR.  - 2024 (4) TMI 104 - DELHI HIGH COURT held that the entire proceedings of GST Registration cancellation are based on the field visit report which is not in relation to the Petitioner for which revocation application has been filed by the Petitioner. The Hon’ble High Court thereafter directed the Respondent to take into consideration the revocation application filed by the Petitioner.

Relevant Provision:

Section 30 of the CGST Act:

“Section 30: Revocation of cancellation of Registration

(1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in such manner, within such time and subject to such conditions and restrictions, as may be prescribed.

(2) The proper officer may, in such manner and within such period as may be prescribed, by order, either revoke cancellation of the registration or reject the application:

Provided that the application for revocation of cancellation of registration shall not be rejected unless the applicant has been given an opportunity of being heard.”

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