GST Registration Can’t Be Cancelled with Retrospective Effect Without Providing Reasons for Same | HC

Case Details: Sanchit Jain v. Avato Ward -46 State Goods & Services Tax - [2023] 157 taxmann.com 570 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Rajeev Aggarwal, Prateek Bhadwar, Shaguftha H. Badhwar & Ms Samridhi Vats, Advs. for the Respondent.

Facts of the Case

In the present case, the proper officer issued a show cause notice to petitioner proposing to cancel its GST registration on ground of failure to furnish returns for a continuous period of six months. Additionally, the petitioner’s GST registration was suspended with effect from date of show cause notice. Thereafter, an order was issued cancelling petitioner’s registration with retrospective effect. It filed instant petition challenging the said order.

High Court Held

The Honorable High Court noted that the cancellation with retrospective effect cannot be arbitrary and the impugned order did not provide any reason for cancelling GST registration let alone doing so with retrospective effect. Moreover, the GST registration was cancelled from the date covering even that period during which petitioner had filed returns. Therefore, the impugned order to extent cancellation of registration with retrospective effect, was to be set aside and GST registration shall stand cancelled from date of issuance of notice.