LI Network
Published on: December 12, 2023 at 16:16 IST
The Delhi High Court has issued a directive for the reinstatement of GST registration, highlighting that the petitioner or assessee was not provided any opportunity for a hearing.
In a bench presided by Justice Vibhu Bakhru and Justice Amit Mahajan, it was observed that the show cause notice (SCN) failed to specify any time or date for a personal hearing. Consequently, the petitioner was deprived of a chance to contest the SCN, rendering the order canceling the petitioner’s registration void due to a violation of the principles of natural justice.
The petitioner, an association of persons formed by ATT Sys India Pvt. Ltd. and Estex Tele Private Limited, was established in July 2015 to execute a contract awarded by the Indian Highway Management Company Limited (IHMCL) for conducting traffic surveys on national highways in Zone 4 (Uttar Pradesh, Bihar, and Jharkhand). After the enactment of Goods and Services Tax (GST) laws in 2017, the petitioner obtained a GST Identification Number.
The petitioner claimed that the contract with IHMCL was terminated, leading to disputes resolved through arbitration, resulting in an award in favor of the petitioner.
As per the arbitral award, IHMCL was directed to make payments of Rs. 5,49,97,760 to the petitioner. Despite having received funds from the award, the petitioner discovered the cancellation of its GST registration on the portal, hindering the filing of returns.
The petitioner filed the petition seeking the revocation of the order canceling its GST registration, asserting that it was canceled without proper notice or an opportunity to be heard.
The court noted that even if the respondent’s contention about issuing the SCN on November 27, 2020, is accepted, the SCN did not specify a time or date for a personal hearing, leaving the petitioner without an opportunity to contest it.
The court directed the restoration of the petitioner’s GST registration, with the petitioner instructed to comply with statutory provisions by filing returns according to the law.
The court clarified that the order wouldn’t prevent GST authorities from taking further steps if the petitioner violates statutory compliance.
Case Title: ATT SYS India Pvt Ltd Estex Tele Private Limited Consortium vs. The Commissioner Goods And Services Tax Delhi