GST Registration Can’t Be Cancelled for Period When Assessee Was Filing Returns | Delhi HC

Case Details: Kwatra Auto Industries v. Commissioner of Delhi Goods and Services Tax - [2024] 159 taxmann.com 751 (Delhi)

Judiciary and Counsel Details

• • Sanjeev Sachdeva & Ravinder Dudeja, JJ.
  • M.A. Ansari, Khursheed Ahmad, Arvind, Kumar Soni, Mohd Kamil & Ahmad Ansari, Advs. for the Petitioner.
  • Ms Shaguftha for the Respondent.

Facts of the Case

In the present case, the petitioner’s registration was cancelled with retrospective effect from 1-7-2017. It challenged the order by filing writ petition on the ground that show cause notice and impugned order did not put petitioner to notice that registration was liable to be cancelled retrospectively.

High Court Held

The Honorable High Court noted that the petitioner had filed last GSTR-3B return for September, 2019 and had shut down business w.e.f. 1-10-2019. As per Section 29(2) of CGST Act, 2017, the proper officer could cancel GST registration from such date including any retrospective date, as he may deem fit if circumstances set out in said sub-section are satisfied.

Merely, because a taxpayer had not filed returns for some period did not mean that taxpayer’s registration was required to be cancelled with retrospective date covering period when returns were filed. Therefore, the Court held that the order of cancellation was to be modified to extent that same was to operate w.e.f. 1-10-2019, i.e., date when business was shut down.