SANJAY KUMAR vs UNION OF INDIA & ANR.

$~30
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 14.02.2024
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+ W.P.(C) 1584/2024
SANJAY KUMAR ….. Petitioner
versus
UNION OF INDIA & ANR. ….. Respondents

Advocates who appeared in this case:

For the Petitioner: Mr. Mohd. Ali Chaudhary, Mr. Ashish Mishra, Mr. Abu Zar Ali and Mr. Kuldeep Kumar, Advocates.

For the Respondents: Mr. Anurag Ojha, Senior Standing Counsel with Mr. Subham Kumar, Advocate.
CORAM:-
HON’BLE MR. JUSTICE SANJEEV SACHDEVA
HON’BLE MR. JUSTICE RAVINDER DUDEJA

JUDGMENT

SANJEEV SACHDEVA, J (ORAL)

1. The petitioner impugns order for cancellation of registration dated 07.03.2023 whereby the GST registration was cancelled with effect from 15.01.2023.

2. Issue notice. Notice is accepted by learned counsel for the respondent. With the consent of parties, petition is taken up for final disposal.

3. Petitioner runs a proprietorship firm under the trade name of S.K Transports and possessed a GST registration.

4. Records demonstrate that the petitioner was issued System-Generated Notices dated 26.03.2022, 28.04.2022, 27.07.2022, 29.01.2023 and 28.10.2022 before issuance of a Show Cause Notice on 15.01.2023.

5. Impugned order dated 07.03.2023 passed on the Show Cause Notice states that the registration is liable to be cancelled for the following reason “Returns not filed for continuous period of more than six months. Hence SCN for cancellation of registration issued on 15.01.2023. But tax-payer has still not filed returns neither have they filed reply to SCN. As per GSTIN AIO portal, last GSTR3B filed for January 2022. Hence registration being cancelled.” The GST registration was cancelled w.e.f., 15.01.2023.

6. In our view, order dated 07.03.2023 does not qualify as an order of cancellation of registration. On one hand, it states that the registration is liable to be cancelled and on the other, in the column at the bottom there are no dues stated to be due against the petitioner and the table shows nil demand.

7. Learned Counsel for the petitioner submitted that the petitioner has duly filed all the returns for February and March of Financial Year 2021-2022 and for June, September and December of Financial Year 2022-2023 on 10.06.2023. Petitioner filed the requisite returns for January for the Financial year 2022-2023 on 25.07.2023.

8. As per the petitioner a family member of the petitioner had seriously fallen ill during the period and thus returns could not be filed. He states that he is willing to file returns and pay the charges for delayed filing.

9. In view of the above facts and circumstances, the petition is allowed. The order of cancellation dated 07.03.2023 is accordingly set aside. GST registration of the petitioner is restored, subject to petitioner filing requisite returns up to date and complying with Rule 23 and its provisos of the Central Goods and Service Tax Rules, 2017.

10. It is clarified that respondents are not precluded from taking any steps for recovery of any tax, penalty or interest that may be due from the petitioner in accordance with law.

11. Petition is disposed of in the above terms.

SANJEEV SACHDEVA, J

RAVINDER DUDEJA, J
FEBRUARY 14, 2024
NA

W.P.(C) 1584/2024 Page 1 of 4