GST Registration Can’t Be Cancelled With Retrospective Effect If No Such Proposal Was There in SCN | Delhi HC

Case Details: Virender Kumar Jain v. Delhi GST Officer, Ward 76 - [2023] 153 taxmann.com 546 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Puneet Rai & Nikhil Jain for the Petitioner.
  • Rajeev Aggarwal, ASG & Mahbher Mittal, Adv. for the Respondent.

Facts of the Case

In the present case, the petitioner applied for cancellation of his GST Registration on 20-11-2020 with effect from the said date on account of ill-health due to cancerous ailment. The department rejected the application. Thereafter, the department issued a notice dated 4-2-2021 to cancel the registration which petitioner failed to reply and the registration was cancelled with retrospective effect from 1-7-2017. It filed appeal for cancellation with retrospective effect but the appeal was rejected and it filed writ petition.

High Court Held

The Honorable High Court noted that SCN did not indicate that the concerned officer had proposed to cancel registration with retrospective effect. It also did not indicate that any inquiries were made, which revealed that petitioner had never existed at his declared place of business. The Court also noted that the petitioner had already applied for cancellation due to closure of business due to ill-health and therefore, the question of petitioner being available at principal place of business did not arise.

The Court further noted that this could not have been a ground for cancellation of petitioner’s GST registration that too with retrospective effect from date of its issuance i.e. 1-7-2017 without mentioning it in the notice. Therefore, the Court allowed the petition and it was held that the cancellation of petitioner’s GST Registration would be effective from 20-11-2020.