A new GST Registration was granted on 09-Sep-2022 in Delhi.Petitioner commenced business of trading in Betel Nuts.Placed Order to a supplier to supply Betel Nuts in Karnataka.
While goods were in transit The Assistant Commissioner, Jaipur intercepted consignment as they found it suspicious. Petitioner challenged this before the Rajasthan High Court.
In furtherance of the said action, the concerned Officer from Jaipur visited Delhi and with the help of The Commissioner, DGST conducted physical inspection on 27.09.2022.
Field visit Report (REG-30) was prepared but was never uploaded. Also no photograph were taken during field visit.
Petitioner was never intimated about field visit.
Registration was cancelled wef 09-Sep-2022 vide Order dated 02-Nov-2022.
Delhi High Court held:
Physical Verification is in violation of Rule 25 of GST Laws as Form REG-30 and Photographs are to be uploaded within 15 days of Physical Verification.
Registration cancellation order is set aside.
Title: KPM Enterprises vs The Commissioner, DGST
Court: Delhi High Court
Citation: WP(C) 16388/2022 & CM No. 51463/2022
Dated: 29-Nov-2022
Delhi High Court in case of Bimal Kothari hd earlier held that Physical Verification under Rule 25 can only be conducted after intimation to the Person.
Without intimation Physical Verification cannot be conducted.
Conditions for uploading of Report and Other documents/photographs within 15 days are sacrosanct.
In case of Curil Tradex P Ltd, Delhi High Court have held that SCN and personal hearing is necessary before cancellation.
CA Abhishek Raja Ram
