Can such Verification be carried by Department in absence of Assessee without issuing him Notice of Verification time ensuring his presence?
If you like the discussion request you to please share it to maximum so that Department Officers follows the Rules of Verification before cancelling anyone's Registration. ????????
These were the issues before Delhi High Court.
Assessee filed application for relocation of his Principal Place of Business in June'2018
A Show Cause Notice was issued on 04-Dec-2018 for proposing cancellation of Registration due to failure of Physical Verification which was duly replied on 07-Dec-2018.
Physical Verification are governed by Rule 25 which mandates that Physical Verification has to be done in Presence of the Assessee whereas the said Physical Verification was done without issuing intimation to the Assessee or without ensuring his presence.
The Delhi High Court held that such Verification without presence of Assessee such Verification cannot be conducted.
Title: Bimal Kothari vs Assistant Commissioner (DGST)
Court: Delhi High Court
Citation: WP(C) 9207/2019 & CM No37947/2019
Dated: 01-Nov-2022
Section: Rule 25
Delhi High Court in
1) Micro Focus Software Pvt Ltd
2) Curil Tradex Pvt Ltd
have given similar Judgements regarding procedure to be followed in case of Physical Verification of Premises.
Calcutta High Court in case of Rohit Varma also defined the procedure to be followed.
In case of Rohit Varma his application of Revocation of GST Registration was rejected by the Department as his Physical Verification was not completed because Receptionist of the building could not recognise the face of Rohit Varma.
Calcutta High Court in this case rejected the claim of Department and guided them how verification should be done in such cases.
Rule 25 should be understood as per the common parlance which are as follows:
A) Notice for Physical Verification should be given to ensure presence of the Assessee
B) In case there is failure a Notice should be issued to concerned person and call them to Department.
C) In case issue is with person and Landlord, notice should be issued to both and both should be called to Department
Article 19(1)(g) of Constitution grants Fundamental Right to Practice any Business or Trade or Profession.
Cancellation of GST Registration violates the basic fundamental rights to earn and livelihood.
Thanks & Regards
Abhishek Raja Ram
Comment: