GST Registration can’t be Cancelled Retrospectively if SCN didn’t Propose to Cancel with Retrospective Effect: HC
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- Last Updated on 15 May, 2023
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Case details: Aditya Polymers v. Commissioner of Delhi Goods and Services Tax - [2023] 150 taxmann.com 223 (Delhi)
Judiciary and Counsel Details
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- Vibhu Bakhru and Amit Mahajan, JJ.
- Rakesh Kumar, Adv. for the Appellant.
- Ms. Shilpa Singh, Rajeev Aggarwal and Ms. Divyanshi Bansal, Advs. for the Respondent.
Facts of the Case
The petitioner did not respond to the said show cause notice and consequently, the petitioner’s GST registration was cancelled with effect from the date on which it was granted i.e. 01.07.2017. It filed appeal against the cancellation order but the same was rejected as time barred. It filed writ petition and challenged the cancellation of registration with retrospective effect.
High Court Held
The Honorable High Court noted that the show cause notice issued to petitioner didn’t mention that proper officer proposed to cancel registration with retrospective effect. As per Section 29(2) of the CGST Act, the proper officer is empowered to cancel the registration from any such date as he may deem fit including from any retrospective date. However, selecting a date from which to cancel the registration cannot be arbitrary.
In the instant case, the petitioner had no opportunity to address any proposed action of cancellation of registration ab initio. However, the petitioner submitted that she had no objection if the order cancelling the GST registration is sustained albeit with effect from date of notice i.e. 11.12.2020. Therefore, it was held that the cancellation of the petitioner’s GST registration would take effect from 11.12.2020 and not from 01.07.2017.
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