Delhi HC Nullifies GST SCN Due to Failure to Dispatch REG-31 Form to Petitioner

The division bench of the Delhi High Court noted that the failure to dispatch Form GST REG 31 to the taxpayer breaches the right to take proper remedy against GST Registration cancellation. The impugned show cause notice as well as Form GST REG 31 is been set aside by the court.

The petitioner Rajkumar Singhal, said that the subject Show Cause Notice is defective for the reason it does not cite the name and designation of the related officer who has issued that.

There is a reference to specific supportive documents attached, it argued, however, no attachment to the Show Cause Notice is there and there is no clue as to where the applicant shall determine the supportive documents.

The applicant’s counsel stated that the SCN has not been signed by the proper officer but endures the digital signatures of the Goods and Service Tax Network.

Petitioner’s counsel prayed for the deletion of respondent No.3 from distinct parties. As per that respondent No.3 is deleted from distinct parties. Revised memo of parties be filed within 2 days. The respondent’s counsel furnished that Form GST REG 31 on 19.02.2024 was physically dispatched to the applicant dated 20.02.2024, asking the petitioner to provide a reply within 30 days of receipt of the notice. In Court, a copy of Form GST REG 31 on 19.02.2024 has been produced.

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It was mentioned that the applicant still needs to obtain Form GST REG 31 and reserves his right to choose the pertinent remedy against it. The SCN displays that it has been furnished on the basis that registration has been received via fraud, willful misstatement, or suppression of facts.

The notice is not clear as to which of the foundations are applicable i.e. fraud, willful misstatement, or suppression of facts. No name, designation, or signature of the issuing authority is on the notice.

The Court cited that Rule 21A of the Central Goods and Services Tax Act, 2017, mandates that the person who is alleged to be in violation will be intimated in Form GST REG 31 electronically on the common portal or via sending the communication to the e-mail address furnished during registration or as revised over the time.

On the portal, Form GST REG 31 admittedly has not been uploaded or sent electronically by e-mail to the applicant however the same is stated to have been sent to the applicant via physical mail, which could not be a mode of service, as defined under Rule 21A. In any case, the Form that has been produced in Court does not the SCN, which was sent to the applicant.

The bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja set aside the impugned show cause notice (SCN) along with Form GST REG 31. It shall be open to the respondents to furnish a proper show cause notice to the applicant as per the law if there is any violation, and if issued, it is disposed of under law after giving a chance of personal hearing to the applicant.