GST Update

 Desk of CA Praveen Sharma – 905 Series (CAPS) 

Delhi High Court in the case of Param Infrawell Private Limited

1. The petition was heard in hybrid mode and was filed under Article 226 challenging the cancellation of GST registration.

2. GST registration was cancelled vide order dated 30 April 2025, arising from an earlier show cause notice dated 08 November 2022 and cancellation order dated 17 January 2023.

3. The SCN alleged non-filing of returns. No reply was filed and no personal hearing was attended, leading to retrospective cancellation of registration from 02 July 2017.

4. The appeal against cancellation was dismissed by the Appellate Authority only on the ground of limitation, without examining the merits of the case.

5. The petitioner contended that the final order relied on the ground of “non-existent principal place of business”, which was never mentioned in the SCN, making the cancellation legally unsustainable.

6. The department opposed condonation of delay by relying on judicial precedents, though the issue of delay condonation is pending before the Supreme Court.

7. Relying on Supreme Court guidance in similar matters, the High Court held that the appeal should be decided on merits despite delay, subject to payment of costs.

8. The appeal was restored subject to payment of ?25,000 as costs. The petitioner was allowed to file documents by 31 January 2026, and directions were issued for a fresh hearing with proper notice.
   
   LINK:CA. Praveen Sharma on Linkedin
   
   Regards
   CAPS