M/SODINTRADERS(THROUGHITSPROPRIETORKARTAR) v. OFFICEOFTHECOMMISSIONERCGSTDELHINORTH
Case at a glance
Key paragraphs
- Para 77. AfterhearingthePetitioner, letanorderbepassedinrespectoftheSCNdated12thSeptember,2024inaccordancewithlaw.8.LetacopyofthesaidorderbeplacedbeforethisCourt. Anyorder, whichisbeingpassed, shallbesubjecttofurtherorderspassedinthepresentpetition.9.Itis, however, madeclearthatsincetheSCNdoesnotcontemplatetheretrospectivecancellation, noorderdirectingtheretrospectivecancellationshallbepassedbytheRespondent. ThiswouldnotbarissuanceofafreshSCNforretrospectivecancellation, inaccordancewithlaw.”5.Today, theCourtisinformedthatthePetitionerhadfiledareplytotheimpugnedSCNandthereafter, afreshshowcausenoticehasbeenissuedtothePetitioneron21stNovember,2025,contemplatingretrospectivecancellationoftheGSTRegistration.6.Ontheotherhand, theDepartment’ssubmissionisthatthisisacaseoffraudulentavailmentofITCforwhichproceedingsunderSection74oftheCentralGoodsandServiceTaxAct,2017,arecontemplated. Thus, theproceedingspursuanttotheshowcausenoticesarenecessarytobepursued. Inouropinion, thisisanindependentissueforwhichtheDepartmentisfreetotakeactioninaccordancewithlaw.7.Accordingly, boththeshowcausenoticeswouldbeliabletobedecidedtogether, asthemaingroundforissuanceofbothshowcausenoticesisthatthePetitionerdoesnotexist. ThequestionastowhetherthePetitionerexistsandwhetheritisconductingbusinessornotwouldhavetobedeterminedonthebasisofthesituationprevalentonthedateofissuanceofboththeshowcausenotices.8.LetthePetitionerfurnishalltheproofwithrespecttoitsexistenceand This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR…
Judgment
$~7*INTHEHIGHCOURTOFDELHIATNEWDELHI+W.P.(C)13251/2025M/SODINTRADERS(THROUGHITSPROPRIETORKARTAR).....PetitionerThrough:Mr.AmanSinha, Adv.versusOFFICEOFTHECOMMISSIONERCGSTDELHINORTH.....RespondentThrough:Mr.AkashVerma, SSC,CBIC.CORAM:JUSTICEPRATHIBAM.SINGHJUSTICERENUBHATNAGARORDER%24.11.20251.Thishearinghasbeendonethroughhybridmode.2.ThepresentpetitionhasbeenfiledbythePetitionerunderArticle226oftheConstitutionofIndia, interalia, assailingtheshowcausenoticedated12thSeptember,2024.ThePetitionerfurtherseeksissuanceofanappropriatewritdirectingtheRespondenttocanceltheGSTRegistrationofthePetitionerw.e.f.12thSeptember,2024andnottoresorttoretrospectivecancellation.3.ThePetitionerhasaGSTRegistrationbearingNo.07GPIPK8957R1ZL.ThecaseofthePetitioneristhatashowcausenoticewasissuedon12thSeptember,2024(hereinafter,‘impugnedSCN’)callinguponthePetitionertoshowcauseastowhytheGSTRegistrationofthePetitionershouldnotbecancelled. TheimpugnedSCNwasissuedonthefollowingground: This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 28/11/2025 at 15:33:31 AscanbeseenfromtheaboveimpugnedSCN,thegroundonwhichtheGSTRegistrationcancellationwasproposedwasthatthePetitionerwasfoundnon-existentatitsplaceofbusiness.4.Onthelastdateofhearing, uponhearingtheparties, thefollowingdirectionswereissuedbytheCourt:“6.Heard. Inthepresentwritpetition, variousphotographs, Rentagreement, PANcardasalsoFormGSTR-3BhavebeenfiledtoshowthatthePetitionerhasaproperbusinesspremises. Consideringthenatureoftheprayermade, letthePetitionerbegivenpersonalhearingbytheRespondent. NoticeofpersonalhearingbeservedtothePetitioneronthefollowingemailaddressandthemobilenumber:● Email Address: [email protected], [email protected]● Mobile: 9990174008, 971654466 This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 28/11/2025 at 15:33:31
#7. AfterhearingthePetitioner, letanorderbepassedinrespectoftheSCNdated12thSeptember,2024inaccordancewithlaw.8.LetacopyofthesaidorderbeplacedbeforethisCourt. Anyorder, whichisbeingpassed, shallbesubjecttofurtherorderspassedinthepresentpetition.9.Itis, however, madeclearthatsincetheSCNdoesnotcontemplatetheretrospectivecancellation, noorderdirectingtheretrospectivecancellationshallbepassedbytheRespondent. ThiswouldnotbarissuanceofafreshSCNforretrospectivecancellation, inaccordancewithlaw.”5.Today, theCourtisinformedthatthePetitionerhadfiledareplytotheimpugnedSCNandthereafter, afreshshowcausenoticehasbeenissuedtothePetitioneron21stNovember,2025,contemplatingretrospectivecancellationoftheGSTRegistration.6.Ontheotherhand, theDepartment’ssubmissionisthatthisisacaseoffraudulentavailmentofITCforwhichproceedingsunderSection74oftheCentralGoodsandServiceTaxAct,2017,arecontemplated. Thus, theproceedingspursuanttotheshowcausenoticesarenecessarytobepursued. Inouropinion, thisisanindependentissueforwhichtheDepartmentisfreetotakeactioninaccordancewithlaw.7.Accordingly, boththeshowcausenoticeswouldbeliabletobedecidedtogether, asthemaingroundforissuanceofbothshowcausenoticesisthatthePetitionerdoesnotexist. ThequestionastowhetherthePetitionerexistsandwhetheritisconductingbusinessornotwouldhavetobedeterminedonthebasisofthesituationprevalentonthedateofissuanceofboththeshowcausenotices.8.LetthePetitionerfurnishalltheproofwithrespecttoitsexistenceand This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 28/11/2025 at 15:33:31 functioning, asalsowithrespecttowhetherthePetitionerhasmoveditsplaceofbusinessornot. AllthenecessarydocumentssubstantiatingthesameshallbeshowntotheDepartment.9.LettheDepartmenttakeacomprehensiveviewonboththeshowcausenoticesdated12thSeptember2024and21stNovember2025andadjudicatethesameinaccordancewithlaw.10.Anopportunitytofilereplytoboththeshowcausenotices, andopportunitytoappearforpersonalhearingshallbegrantedtothePetitioneronthefollowingemailaddressandphonenumber:•EmailAddress:[email protected], [email protected]•Mobile:999017400811.Thewritpetitionisaccordingly, disposedofintheaforesaidterms. Pendingapplications, ifany, arealsodisposedof.PRATHIBAM.SINGH,J.RENUBHATNAGAR,J.NOVEMBER24,2025kk/ss
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