The Hon’ble Delhi High Court in the case of Alfa Enterprises v. The Principal Commissioner & Anr. [W.P.(C) 8149/2025 dated May 30, 2025] directed the department to adjudicate the matter relating to suspension of GST registration by granting the personal hearing. Also, the prayer made relating to re-inspection of the premises was rejected by the Hon’ble High Court, by stating that the said request can be made before the Adjudicating Authority.
Facts:
M/s Alfa Enterprises (“the Petitioner”) has filed the writ petition challenging the Show Cause Notice dated January 23, 2025 (“the Impugned SCN”) passed by the CGST Department (“the Respondent”). By issuing the Impugned SCN, the Respondent has sought to cancel the GST registration with effect from January 23, 2025, on the ground that the Petitioner-firm was found to be non-functional during the investigation. Also, the Petitioner filed a reply to the Impugned SCN, however, Order has not been passed post filing of reply.
The Petitioner also seeks a fresh inspection of the premises, relying on the Delhi High Court’s decision in the case of M/s V S Enterprises v. The Commissioner DGST & Anr [W.P.(C) 7019/2025 dated May 22, 2025], wherein re-inspection of the Premises was directed.
Held:
The Hon’ble High Court in the case of W.P.(C) No. 8149/2025 held as under:
- Opined that, the request for re-inspection can be made before the Adjudicating Authority. Therefore, the Hon’ble High Court is not inclined to quash the Impugned SCN.
- Held that, the Respondent shall grant the Petitioner a personal hearing and issue notice for the same, based on the submission made by the Petitioner that the Petitioner’s firm has come to a standstill due to the suspension initiated vide the Impugned SCN.
Our Comments:
There is growing trend which can be seen from the judgments passed by the Hon’ble High Courts wherein the scope of granting the relief in relation to writ petition filed against the show cause notice issued and orders passed by the GST Department. Therefore, the taxpayer needs to take into consideration the jurisprudence laid out for filing of writ petition in such cases. The Hon’ble Delhi High Court in the case of M/s. Mahesh Fabrinox Pvt. Ltd. v. Union of India [W.P.(C) 6006 of 2025, dated May 06, 2025], dismissed the writ petition filed against the order passed wherein it was alleged that the Petitioner is involved in passing off of fraudulent ITC and further, limited the scope of invoking writ jurisdiction in such cases where there is violation of natural justice or jurisdictional error and further imposed a penalty of INR 1 Lakh on the Petitioner. However, the possibility of ambiguity arises, as in the case of M/s V S Enterprises vs. The Commissioner DGST & Anr [W.P.(C) 7019/2025 dated May 22, 2025], by similar bench, relief was granted by the Hon’ble High Court in similar set of facts, by directing the Department to conduct the re-inspection.
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