Delhi High Court Orders Firm’s Compliance with Anti Evasion Cell Investigation and Appearance Before Proper Officer in GST Suspension Case Update
Case Name: M/s Balaji Tilak Metal and Alloys Pvt. Ltd. v. Principal Commissioner of Department of Trade and Taxes, Government of NCT of Delhi and Anr
Case No.: W.P.(C) 7224/2024
Dated: May 20, 2024
Quorum: Justice Sanjeev Sachdeva and Justice Ravinder Dudeja
FACTS OF THE CASE:
The facts of the present case centre the petitioners in their petition, M/S Balaji Tilak Metal and Alloys P. Ltd., the petitioner requests the revocation of a Show Cause Notice that was issued on March 27, 2024, and that suspended their GST registration.
On February 15, 2024, a Show Cause Notice was submitted, suggesting that the petitioner’s GST registration be cancelled and stopped immediately. When the petitioner showed up before the Proper Officer, the Anti Evasion Cell, which was looking into the petitioner as a non-existent firm, told him to join the inquiry.
ISSUES:
- The petitioner seeks to quash a Show Cause Notice dated 27.03.2024, which suspended their GST registration
CONTENTIONS OF THE APPELLANTS:
The learned counsel for the appellants fiercely and strongly argued that a Show Cause Notice that suspended the petitioner’s GST registration is being challenged. Existence of Business: The petitioner disputes the Anti Evasion Cell’s assertion that they are a nonexistent company, arguing that they were in fact operating and conducting business.
Updated Address: The petitioner claims that the Anti Evasion Cell failed to notice their new address, which was updated on the GST portal. Inquiry Compliance: As a result of the petitioner’s failure to participate in the Anti Evasion Cell inquiry, the Show Cause Notice dated 27.03.2024 specified the suspension that followed.
Additionally, the petitioners contended that a Show Cause Notice that had suspended their GST registration is being contested. They refuted the Anti Evasion Cell’s claim that they were a nonexistent company, claiming that they were in fact operating and conducting business, and that the Anti Evasion Cell was unaware of their updated address on the GST portal. The petitioners further contended that the Show Cause Notice dated 27.03.2024, which had specified the suspension, was issued as a result of their failure to comply with the Anti Evasion Cell’s investigation.
CONTENTIONS OF THE RESPONDENTS:
The arguments put forward by the learned counsel for the appellants were sharply and passionately rejected by the learned counsel the petitioner’s GST registration was suspended, according to the respondents, because they did not cooperate with the Anti Evasion Cell’s investigation and did not satisfy the Proper Officer regarding their business activities at the registered address.
The investigation by the Anti Evasion Cell was based on the allegation that the petitioner was a non-existent firm. The petitioner was found to be non-existent at the earlier address, and the address had been updated on the GST portal, which the Anti Evasion Cell was unaware of. As a result of these arguments, a Show Cause Notice was issued, suggesting the petitioner’s GST registration be cancelled.
Additionally, the respondents contended that the Anti Evasion Cell’s investigation was predicated on the claim that the petitioner was a nonexistent company. The former location was discovered to be unoccupied, and the Anti Evasion Cell was not informed that the address had been modified on the GST portal. These arguments resulted to the issuance of a Show Cause Notice, which recommended that the petitioner’s GST registration be terminated.
COURT’S ANALYSIS AND JUDGMENT:
The petitioner was instructed to appear before the Anti Evasion Cell on May 28, 2024, at noon, and to appear before the Proper Officer on May 29, 2024, at noon, the court said. The court then directed the aforementioned authorities to issue the necessary directives in response to the petitioner’s request to have the suspension lifted after a maximum of two weeks.
The court ordered the petitioner to appear before the Anti Evasion Cell and the Proper Officer on 28.05.2024 and 29.05.2024 respectively, with further orders to be passed within two weeks thereafter.
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Judgment reviewed by Riddhi S Bhora.
