Delay in GST SCN Proceedings – Court Directs Early Disposal within 45 Days

Case Reference:

• Case Title: Deepak Sharma v. Commissioner Department of Trade and Taxes, Govt. of NCT Delhi

• Court: High Court of Delhi at New Delhi

• Petition No.: W.P.(C) 4922/2025

• Date of Judgment: 17.04.2025

• Relevant Section: Article 226 of the Constitution of India, Section 29 CGST Act (Cancellation of registration), Rule 22 CGST Rules

• Category of Dispute: Cancellation of GST Registration

Facts of the Case (Paras 3–4)

• The petitioner challenged a Show Cause Notice (SCN) dated 19.03.2024 issued by the Department of Trade and Taxes, NCT of Delhi for cancellation of GST registration.

• Alongside the SCN, the petitioner’s registration was suspended from the same date, effectively halting his business operations.

• The petitioner claimed to have filed a reply, but the proceedings were not brought to a conclusion, leaving the registration under indefinite suspension.

Question(s) in Consideration (Paras 3–5)

• Whether prolonged suspension of GST registration without concluding SCN proceedings is legally sustainable.

• Whether the department must ensure time-bound disposal of cancellation proceedings with due hearing to the assessee.

Observations of the Court (Paras 5–6)

• The Court recognized that cancellation of GST registration brings business to a standstill, impacting livelihood and trade.

• Proceedings under the SCN must be concluded within a definite timeframe, as indefinite suspension is arbitrary and prejudicial.

• The Court emphasized the need for a personal hearing and directed that notice of such hearing must be properly communicated through the GST portal and via the petitioner’s email and mobile.

Judgment of the Court (Paras 5–7)

• The Court directed the Respondent–GST Department to conclude the SCN proceedings within 45 days.

• It ordered that a personal hearing shall be granted, with notice served both electronically and on the GST portal.

• The writ petition was disposed of with these directions.

Between Fine Lines (Simplified Outcome)

1. GST registration cannot be kept under indefinite suspension pending SCN.

2. Department must conclude proceedings in a time-bound manner (45 days).

3. Personal hearing is mandatory before cancellation.

4. Authorities must ensure proper communication of notices via portal, email, and mobile.

5. The Court provided relief by ensuring business continuity till proper adjudication.

Summary of Referred Cases

(No external cases referred in this judgment)

Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”