Cancellation of Registration Without Prior Notice From Retrospective Date Held Unsustainable; Cancellation to Be Effective From Date of SCN | HC

Case Details: Prince Chaudhary v. Delhi State Goods and Service Tax - [2025] 172 taxmann.com 850 (Delhi)

Judiciary and Counsel Details

• Yashwant Varma & Harish Vaidyanathan Shankar, JJ.
• Jitin Singhal & Saurab Grover, Advs. for the Petitioner.
• K. G. Gopalakirshnan, Adv. for the Respondent.

Facts of the Case

A show cause notice was issued to petitioner and thereafter impugned order was passed cancelling registration of petitioner retrospectively. The Show cause notice embodied no intent or disclosure of respondent authority contemplating cancellation of registration from a retrospective date Aggrieved by the order, the petitioner filed a writ petition before the Delhi High Court.

High Court Held

The High Court held that the show cause notice embodied no intent or disclosure of the respondents contemplating cancellation from a retrospective date. In Riddhi Siddhi Enterprises v. Commissioner of Goods and Services Tax (CGST), South Delhi [2024] 167 taxmann.com 302 (Delhi), it became apparent that the absence of reasons in the original SCN in support of the proposed retrospective cancellation, as well as a failure to place the petitioner on prior notice of such an intent, clearly invalidates the impugned action. Accordingly, the writ petition was allowed by modifying the impugned order and providing that the cancellation of the petitioner’s GST registration shall come into effect from the date of the SCN.

List of Cases Reviewed

• Riddhi Siddhi Enterprises v. Commissioner of Goods and Services Tax (CGST), South Delhi [2024] 167 taxmann.com 302 (Delhi) (Para 4) followed