Delhi HC directs to allow cancellation of GST registration on date of application filed by petitioner [Read Order]
The Delhi High Court ordered the cancellation of the petitioner's Goods and Service Tax (GST) registration on the day the application was submitted.
![Delhi HC directs to allow cancellation of GST registration on date of application filed by petitioner [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/01/Delhi-HC-cancellation-of-GST-registration-date-of-application-petitioner-taxscan.jpg "Delhi HC directs to allow cancellation of GST registration on date of application filed by petitioner [Read Order]")
In a recent case, the Delhi High Court directed the cancellation of Goods and Service Tax (GST) registration on the date of the application filed by the petitioner. The petitioner, Indotech Magnetics, was registered with the GST authority effective from 16.07.2023. The petitioner claims to have conducted business under the name 'M/s Indo Tech Magnetics.' The petitioner asserts...
In a recent case, the Delhi High Court directed the cancellation of Goods and Service Tax (GST) registration on the date of the application filed by the petitioner. The petitioner, Indotech Magnetics, was registered with the GST authority effective from 16.07.2023. The petitioner claims to have conducted business under the name 'M/s Indo Tech Magnetics.'
The petitioner asserts discontinuation of business from 01.04.2020 and filed an application on 29.05.2020, praying for the GST registration to be canceled from that date. Despite the respondent's inaction for over a year, on 11.01.2022, the GST department issued a notice, citing non-filing of returns for over six months.
The proper officer issued a show cause notice proposing cancellation of the petitioner’s GST registration. The petitioner failed to appear before the proper officer, resulting in the officer passing an order canceling the registration retrospectively from 01.07.2017. The order lacks an explicit reason for cancellation, merely noting the absence of a reply to the show cause notice.
During the proceedings, the court observed that the petitioner indicated business closure from 01.04.2020. Therefore, the failure to file returns thereafter should not be a ground for canceling the registration for that period. The show cause notice neither specifies the reason for cancellation nor provides any clues as to why it was retrospectively canceled.
After analyzing both parties' facts and arguments, a division bench comprising Justice Sanjeev Sachdeva and Justice Ravinder Dudeja directed the cancellation of the petitioner’s GST registration, effective from 29.05.2020—the date of the petitioner's application seeking cancellation.
Advocates Rajesh Mahna, Mr. Ramanand Roy & Mr. Mayank Kouts appeared for the petitioner, while Mr. Rajeev Aggarwal with Ms. Samridhi Vats represented the respondent.
To Read the full text of the Order CLICK HERE
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
