Case Details : GST- Cancellation of registration - Physical verification of business premises without prior intimation
Case Related To : Curil Tradex Pvt Ltd
Declared By : Delhi High Court - Case Law on 26th August 2022
What Happened Exactly :
- The inspection of the business premises was carried out by the department.
- Petitioner states that such verification was carried out without prior intimation.
- Petitioner case that if the proper officer opted for physical verification of the petitioner’s business premises, it could only be carried out in the presence of its authorized representative and a prior notice/intimation needs to be served by the proper officer.
Court's Decision :
- In terms of Rule 25 of CGST Rules, 2017, if after the grant of registration, the proper officer is satisfied that physical verification of the place of business of the concerned person is required, the proper officer may get such verification of the business place carried out, but in the presence of the said person.
- In the instant case, physical verification was carried out by the Revenue without having the petitioner’s authorized representative remain present.
- IFurther, although the inspection of the petitioner’s business premises was carried out, no prior notice was given by the Revenue.
- Had the revenue given notice of the inspection, it could have been carried out in the presence of the authorized representative of the petitioner and hence lent greater authenticity and credibility to the inspection report.
- The petitioner will file an application for revocation of order of cancellation and the same will be adjudicated by the concerned officer and a speaking order will be passed.