In a recent case, the Delhi High Court directed the cancellation of the Goods and Service Tax ( GST ) registration of the petitioner from the date on which the return was filed.
The writ petition was filed by Raj Enterprises, engaged in the business of trading magnetic and optical readers, as well as other appliances and ancillary products. It applied for GST registration on 01.12.2021 and was assigned a Goods and Services Tax Identification Number.
The petitioner claimed it had ceased business, applying for cancellation on 19.10.2021. The respondent rejected the cancellation on 30.11.2021. The petitioner reapplied on 01.12.2021, citing cancellation from 15.11.2021, having filed returns till 31.12.2021.
Despite a second denial, the petitioner failed to file returns for six months, prompting a show cause notice on 10.08.2022. The respondent suspended the registration from 10.08.2022 and, after no reply, canceled it on 27.09.2022, effective from 19.10.2020.
The court observed the cancellation was solely due to non-filing for six months, challenging that this couldn’t justify retrospective cancellation. The petitioner wasn’t given a chance to contest it. The court directed cancellation from the date of return filing.
Advocates Pulkit Verma & Mr. Peyush Purthi represented the petitioner, and Arunima Dwivedi, Atul Tripathi & Mr. V.K. Atri represented the respondent.
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