Delay in filing revocation of cancellation of GST registration due to family member’s medical condition: Delhi HC restored GST registration [Read Order]

In a significant case, the Delhi High Court restored the Goods and Service Tax ( GST ) registration after observing the delay in filing the revocation of cancellation of GST registration was due to the family member’s medical condition.

The writ petition was filed by the petitioner Kiran Devi Goel against the retrospective;ly canceled GST registration. The reason mentioned in the show cause notice ( SCN ) was the petitioner obtained the registration through fraud, wilful misstatement or suppression of facts". However the SCN does not specify any cogent reason, it merely states “Section 29(2)(e)-registration obtained by means of fraud, wilful misstatement or suppression of facts”. Accordingly the GST registration of the petitioner was canceled retrospectively.

Before the division bench Nitin Gulati, counsel for the petitioner submitted that the Petitioner had filed an application for condonation of delay of revocation of cancellation of registration dated 21.08.2023 on the ground that processing of documents got delayed due to a family member’s medical condition.

further submits that the Petitioner was served with a Show Cause Notice dated 14.02.2024 on the application dated 21.08.2023, however, Petitioner being a senior citizen could not reply to the said notice as she received the notice late.

Harpreet Singh, Counsel for the respondent argued that one of the consequences for canceling a taxpayer’s registration with retrospective effect is that the taxpayer’s customers are denied the input tax credit availed in respect of the supplies made by the taxpayer during such period.

It was observed by the court that the said Show Cause Notice also does not put the petitioner to notice that the registration is liable to be canceled retrospectively. Thus, the petitioner had no opportunity to even object to the retrospective cancellation of the registration.

After analyzing the facts and arguments of both parties, a division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja set aside the retrospectively canceled GST registration and the The GST registration of the petitioner was restored. Although ordered that Petitioner shall, however, make all necessary compliances and file the requisite returns and information inter alia in terms of Rule 23 of the Central Goods and Services Tax Rules, 2017.

To Read the full text of the Order CLICK HERE

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