Non-Continuation of Business: Delhi HC directs GST Registration to be Cancelled from Date of Issue of SCN [Read Order]
Delhi HC treats Date when Show Cause Notice seeking cancellation of GST registration was issued as both the petitioner and the respondent want the GST registration to be cancelled, though for different reasons
![Non-Continuation of Business: Delhi HC directs GST Registration to be Cancelled from Date of Issue of SCN [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/06/Non-Continuation-of-Business-Delhi-HC-GST-Registration-Cancelled-from-Date-of-Issue-of-SCN-TAXSCAN.jpg "Non-Continuation of Business: Delhi HC directs GST Registration to be Cancelled from Date of Issue of SCN [Read Order]")
The Delhi High Court treated the GST Registration to be cancelled from the date of issue of the show cause notice (SCN) on non-continuation of business by the petitioner. A Show Cause Notice was issued to the Petitioner seeking to cancel its registration. The notice stated, “Issues any invoice or bill without Act, or the rules made thereunder refund of tax. supply of goods and/or...
The Delhi High Court treated the GST Registration to be cancelled from the date of issue of the show cause notice (SCN) on non-continuation of business by the petitioner.
A Show Cause Notice was issued to the Petitioner seeking to cancel its registration. The notice stated, “Issues any invoice or bill without Act, or the rules made thereunder refund of tax. supply of goods and/or services in violation of the provisions of this leading to wrongful availment or utilization of input tax credit.” Said Show Cause Notice does not put the petitioner to notice that the registration is liable to be cancelled retrospectively. Thus, petitioner had no opportunity to object to the retrospective cancellation of the registration.
Pursuant to the said impugned order, Petitioner filed an application seeking revocation of cancellation of GST registration. On the said application, Petitioner was issued Show Cause Notice for rejection of application for revocation of cancellation of GST registration stating “Reason for revocation of cancellation - Others (Please specify) - You have availed ITC from SAI Enterprises and Mahadev Enterprises.” Petitioner even filed a reply dated 20.07.2023 to the said Show Cause Notice.
In terms of Section 29(2) of the CGST Act, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. Registration cannot be cancelled with retrospective effect mechanically.
A Division Bench of Justices Sanjeev Sachdeva and Ravinder Dudeja observed that “In view of the above and the fact that the Petitioner does not seek to carry on business or continue the registration, impugned order dated 15.05.2023 is modified to the limited extent that registration shall now be treated as cancelled with effect from 27.04.2023 i.e., the date when Show Cause Notice seeking cancellation of GST registration was issued. It is clear that both the petitioner and the respondent want the GST registration to be cancelled, though for different reasons.”
To Read the full text of the Order CLICK HERE
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