2025 (2) TMI 509

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..... GST inspector in terms of the Rule 25 of the CGST Rules, 2017. The said report clearly records that at the time of the physical verification, the Petitioner himself was present and he was dealing in scrap material and the firm was also found functioning. The Petitioner has neither been given the proper material nor has a hearing been given. The cancellation of GST registration can have adverse consequences on the Petitioner who would find it challenging to conduct his business. The show cause notice is completely cryptic. The cancellation order dated 7th December, 2023 is accordingly quashed and set aside - Petition disposed off.
JUSTICE PRATHIBA M. SINGH AND JUSTICE DHARMESH SHARMA For the Petitioner Through: Mr. Dipak Raj, Mr. Kul .....

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..... any business from declared place of business. 2. As per AC(AE), CGST Delhi East letter no.5312 dated 22-11-2023, firm was involved in passing on of inadmissible ITC without actual supply of goods and services." In this SCN, however, no date for hearing has been fixed. The Petitioner was directed to file a reply to the said SCN. 6. The case of the Petitioner is that he filed a reply stating that it is not a fake firm and the address exists. The said reply reads as under: "Dear Sir, This is not the fake firm. The firm address is exist. Please re-visit my firm address. This is not the fake firm. I am not availing the fake ITC." 7. However, vide order dated 7th December, 2023 the Respondent No. 3/Department cancelled the registration of .....

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..... st, 2023 (Annexure A.6), provided by the GST inspector in terms of the Rule 25 of the CGST Rules, 2017. The said report clearly records that at the time of the physical verification, the Petitioner himself was present and he was dealing in scrap material and the firm was also found functioning. The said report is set out below: "10. Comments-at the time of visit the proprietor of the Firm Himself was present. It deals in trading of Scrap. It is found functioning during Visit." Thus, the first ground of the SCN is not sustainable, unless there is credible information to dislodge the findings in the earlier inspection report. 12. Secondly, the allegation is that the firm is involved in passing off inadmissible ITC without actual supply of .....

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