The Delhi High Court ruled that the physical verification of the business premises of the GST registration without providing any notice would be a breach of the principle of natural justice.
The division bench of Justice Rajeev Shakdher and Justice Taravitasta Ganju revealed that the proper officer has chosen the business premises of the applicant for the inspection process, but it is in the absence of its authorized representative. The issues could be removed, or noticed or an intimation would be provided.
The GST registration cancellation was on the basis of the show cause notice. The show cause notice, in turn, was directed to a letter obtained through the Deputy Commissionerate. The respondents/department suspended the registration of the petitioner w.e.f. the issuance date of the show causes notice.
The applicant mentioned that when the proper officer towards the physical verification of the applicant’s business premises the same can be done in the absence of the authorized representative. In this event, notice or intimation shall be provided by the proper officer earlier.
Read Also: GST Circular No. R1/2022 for New Registration Verification
The department specified that if the communication would have been furnished to the applicant then the result shall be identical and hence the complaint of the applicant that the natural justice principles had not complied can not support the reason of the applicant.
According to rule 25 after allotment of the registration, the proper officer would get satisfied that the physical verification of the business premises of the individual is needed. The proper officer might encounter the inspection of the business place that is performed in the presence of the person. Thus collect the verification report including the additional documents along with photographs, uploaded on form GST REG-30 on the common portal within 15 working days following the verification date.
The court, the applicant is mandated to file the application for the revocation of the order of cancellation within the next 15 days. Once an application would get furnished the same would be adjudicated by the related officer within 2 weeks of the submission date. A speaking order would get issued via the related officer and a copy would get furnished to the applicant.
The court mentioned that the case the order would get issued via the related officer would be opposite to the applicant’s interest, the applicant will have the freedom to choose the alternative of a specific remedy under the law.
