Facts of the Case

The Petitioner, Mansura Brush Works, through its proprietor Mohammad Hashim, filed a writ petition under Article 226 of the Constitution of India seeking quashing of a Show Cause Notice dated 28 November 2024. The said notice led to the suspension of the Petitioner’s GST registration.

The Petitioner had obtained GST registration on 1 July 2017 and declared one principal place and two additional places of business on the GST portal.

The Show Cause Notice was issued under Rule 21A of the CGST Rules, 2017 alleging that the Petitioner was not conducting business from the declared place of business.

Instead of filing a reply within the stipulated seven days, the Petitioner requested the GST authorities to revisit the premises. However, no formal reply was submitted, leading to continuation of suspension of GST registration.

Issues Involved

  1. Whether suspension of GST registration due to non-filing of reply to Show Cause Notice is justified.
  2. Whether denial of access to GST portal can prejudice the Petitioner’s right to respond.
  3. Whether opportunity should be granted to file a reply post suspension.

Petitioner’s Arguments

  • The Show Cause Notice dated 28.11.2024 was liable to be quashed.
  • The GST registration was wrongly suspended.
  • The Petitioner was unable to access the GST portal, preventing filing of a reply.
  • A request was made to authorities to revisit business premises for verification.

Respondent’s Arguments

  • The GST registration was only suspended, not cancelled.
  • Suspension occurred due to failure of the Petitioner to file a reply within the prescribed time.
  • The action was in accordance with Rule 21A of the CGST Rules, 2017.

Court’s Findings / Order

  • The Court observed that the Petitioner had not filed a reply within the stipulated time.
  • It acknowledged the Petitioner’s difficulty in accessing the GST portal.
  • The Court directed that:
    • GST portal access be granted to the Petitioner for 30 days to file a reply.
    • Upon filing of reply, the Department shall decide the matter within 30 days.
  • The writ petition was disposed of accordingly.

Important Clarification

  • Suspension of GST registration is not equivalent to cancellation.
  • Non-filing of reply to SCN can validly trigger suspension.
  • However, procedural fairness requires granting reasonable opportunity to respond.
  • Technical issues such as portal access must not defeat substantive rights.

Sections / Rules Involved

  • Article 226, Constitution of India
  • Rule 21A, Central Goods and Services Tax Rules, 2017
  • Provisions relating to GST registration suspension

Link to download the order -  https://delhihighcourt.nic.in/app/showFileJudgment/PMS21032025CW31632025_181501.pdf

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