GST Update

 Desk of CA. Praveen Sharma – 885 Series (CAPS) 

Delhi High Court in the case of Imagine Marketing Limited

• The petitioner challenged the GST registration cancellation order dated 26.11.2024, along with the revocation rejection and appellate order, all issued without proper reasoning or examination of documents.

• The company (parent entity of “boAt”) had valid lease arrangements and submitted complete documentation in response to the SCN dated 15.10.2024, but the cancellation order merely stated that the reply was “not considerable” without any justification.

• Even after filing all required papers, the revocation SCN dated 26.12.2024 was handled mechanically, and the revocation application was rejected on 08.01.2025 without reviewing the submitted material.

• The Appellate Authority also dismissed the appeal on an incorrect assumption that only a lease deed and one electricity bill were filed, despite the appeal index showing complete documentation.

• The Court held that the adjudication was careless and template-based, showing no application of mind, and repeatedly asking for documents already on the GST portal was unnecessary.

• The Court set aside all three orders—the cancellation, revocation rejection, and appellate order—and restored the GST registration. The original SCN must now be re-adjudicated with due consideration and proper hearing.

• A cost of ?25,000 was imposed on the Department, to be recovered personally from the Superintendent, due to negligent and unfair handling of the case.

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