Delhi High Court
Rajesh Kumar Singhal, Sole Proprietor ... vs The Goods And Services Tax Network & Ors. on 10 April, 2024
Author: Sanjeev Sachdeva
Bench: Sanjeev Sachdeva
$~2
* IN THE HIGH COURT OF DELHI AT NEW DELHI
% Date of decision: 10.04.2024
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W.P.(C) 4497/2024
RAJESH KUMAR SINGHAL, SOLE PROPRIETOR RS
INTERNATIONAL .... Petitioner
versus
THE GOODS AND SERVICES TAX NETWORK
& ORS. ..... Respondents
Advocates who appeared in this case:
For the Petitioner: Dayaar Singla
For the Respondents: Mr. Rajeev Aggarwal, ASC with Ms Shaguftha
Hameed & Ms. Samridhi Vats, Advocates for
R-1
CORAM:-
HON'BLE MR. JUSTICE SANJEEV SACHDEVA
HON'BLE MR. JUSTICE RAVINDER DUDEJA
JUDGMENT
SANJEEV SACHDEVA, J. (ORAL)
1. Learned counsel for respondent no.2 submits that respondent
no. 2 is neither necessary nor a proper party as the tax payer is
registered under the State GST authority.
2. Learned counsel for petitioner submits that the petitioner was
not clear as to which authority has issued the notice as the notice does
not give the name or designation of the issuing authority and as such
by way of abundant caution, he impleaded both the State as well as the
Central GST authority as parties to the petition.
3. Petitioner impugns Show Cause Notice dated 12.10.2022
whereby the GST registration of the petitioner is proposed to be
cancelled.
4. Issue notice. Notice is accepted by learned counsel appearing
for respondent. With the consent of the parties, petition is taken up for
final disposal today.
5. Learned counsel for petitioner submits that registration of the
petitioner has been suspended and the petitioner is unable to do any
business.
6. Perusal of the Show Cause Notice shows that the impugned
Show Cause Notice dated 12.10.2022 has been issued to the petitioner
to show cause as to why the GST registration be not cancelled for the
following reason:
"Issues any invoice or bill without supply of goods and/or services in
violation of the provisions of this Act, or the rules made thereunder
leading to wrongful availment or utilization of input tax credit or
refund of tax."
7. The Show Cause Notice also requires the petitioner to appear
before the signatory of the Show Cause Notice. However, neither the
name nor designation of any officer is mentioned as to where the
petitioner has to appear. Further, petitioner has also filed a response to
the Show Cause Notice, however, Show Cause Notice has till date not
been adjudicated.
8. Learned counsel for respondent no.1 submits that the Show
Cause Notice is pending consideration before the proper authority and
states that the same can be disposed of within a time bound period.
9. Normally, this Court does not interdict a Show Cause Notice
and delegates the authorities to adjudicate the Show Cause Notice,
however, we note that the subject Show Cause Notice itself is
defective and does not give any details or particulars. The Show Cause
Notice in the reasons column has merely extracted the provisions of
law. It states that the petitioner has issued invoices or bills without
supply of goods or services, however, no details of invoices, bills or
non-supply of goods or services has been mentioned in the Show
Cause Notice.
10. This Court has consistently held that a Show Cause Notice that
does not contain any details or particulars is vague and cannot be
expected to be responded to.
11. In view of the fact that the Show Cause Notice is bereft of any
details and suffers from infirmities that go to the root of the cause, we
are not exercising the power of remit and directing the proper officer
to re-adjudicate the Show Cause Notice.
12. In view of the infirmities in the Show Cause Notice, we quash
the same. The impugned Show Cause Notice dated 12.10.2022 is
accordingly set aside.
13. It would be however open to the respondent authority to issue a
proper Show Cause Notice giving full particulars of the infractions, if
any, committed by the petitioner as also an opportunity of personal
hearing to the Show Cause Notice.
14. It is clarified that Respondents are not precluded from taking
any steps for recovery of any tax, penalty or interest that may be due
in respect of the subject firm in accordance with law including
retrospective cancellation of the GST registration.
15. Petition is disposed of in the above terms.
SANJEEV SACHDEVA, J
RAVINDER DUDEJA, J
APRIL 10, 2024/sk
