GST Cancellation Order Shall Operate from Date of Demise of Assessee | HC Modified Retrospective Cancellation

Case Details: Ashish Garg v. GST Officer/AVATO - [2024] 160 taxmann.com 96 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • Puneet Rai, Sushil Gaba & Kapil Sharma, Advs. for the Petitioner.
  • Rajeev Aggarwal, ASC for the Respondent.

Facts of the Case

In the present case, the registration of assessee was cancelled with retrospective effect on ground of non-filing of returns for continuous period of six months. The writ petition was filed against the cancellation order and it was contended by legal heir that proprietor was doing his business till first half of year 2021 and expired on 15-08-2021. It was further submitted that he did not intend to carry on business and business had been discontinued on demise of assessee.

High Court Held

The Honorable High Court noted that the impugned order did not give any reason for cancellation of registration and registration could not be cancelled with retrospective effect mechanically. Moreover, the show cause notice did not put assessee to notice that registration was liable to be cancelled retrospectively.

In instant case, the legal heir of assessee did not seek to carry on business or continue with registration. Thus, the Court held that the impugned order was to be modified to extent that registration was to be treated as cancelled with effect from date of death of proprietor.