TS Events and Management v. Commissioner of CGST Delhi – [2023]
In response to the petitioner’s failure to file returns for a continuous period of six months, the department issued a Show Cause Notice (SCN) requesting justification as to why the petitioner’s GST registration should not be cancelled. Due to poor health, the petitioner was unable to provide a reply, and the department deleted their registration because they failed to do either of those things.
It appealed the cancellation order, but the Appellate Authority rejected it because the petitioner had not provided enough evidence to support the revocation of the cancellation of his registration. As a result, it presented a writ petition to the High Court.
The Honorable High Court observed that the contested order was issued dismissing the appeal on the grounds that there was insufficient justification for cancelling the registration cancellation. The Court also took note of the petitioner’s status as a sole proprietor and his poor health during the pandemic. He was unable to answer to SCN or to personally appear before the concerned officer as a result of this.
Moreover, as evident from the cancellation order, he had entirely satisfied the tax burden and no money was still owed. In light of these mitigating factors, the Court decided to grant the petition and reverse the impugned decree. The Court further ordered the restoration of registration and permitted the petitioner to request a waiver of the penalty for filing returns late, which was partially caused by the cancellation.
