Can your GST Registration be cancelled solely based on purported enquiries from the “nearby shop owners”?
Can your GST Registration be cancelled solely based on purported enquiries from the “nearby shop owners”?
Can your GST Registration be cancelled solely based upon the statement made by the receptionist of the office building who could not recognise the appellant's photograph?
1. Umesh vs Union of India - Delhi High Court
(2024) 9 TMI 1291 :: 2024:DHC:7188 - DB
The petitioner challenged a Show Cause Notice (SCN) canceling their GST registration, claiming that the physical verification incorrectly concluded that their principal place of business was non-existent.
The court found merit in the petitioner's argument, noting that the field report was based on vague inquiries from nearby shop owners without proper evidence. Photographs and other evidence showed that the premises were in existence.
The court directed the petitioner to submit a response with supporting documents, and the proper officer was instructed to take an informed decision based on the reply. The petition was disposed of accordingly.
2. Rohit Varma vs Assistant Commissioner, Burtola, Kolkata - Calcutta High Court
(2023) 70 GSTL 116
Authority while cancelling registration could not solely rely upon the statement made by the receptionist of office building who could not recognise appellant's photograph; notice was to be issued directing appellant to present in office and summon landlord of premises.
GST Registration should be cancelled based on a proper field visit report and after being double-sure that the business does not exist. Cancelling GST Registration has civil consequences too. Therefore, the Department should not hurry in cancelling registration.
Making roving enquiries from neighbour shops or receiptionist of the building are not the right method for making enquiry.
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