GST Registration Should Be Cancelled From Closure Date of Business Due to Sealing Drive By Municipality | Delhi HC

Case Details: R. K. Metal Industries v. Commissioner of GST - [2023] 157 taxmann.com 401 (Delhi)

Judiciary and Counsel Details

• • Vibhu Bakhru & Amit Mahajan, JJ.
  • Dinesh Mohan Sinha, Rajeev Kr. Deora & Wakil Kumar, Advs. for the Petitioner.
  • Rajeev Aggarwal, ASC & Ms Charu Sharma, Adv. for the Respondent.

Facts of the Case

In the present case, the business of assessee was closed in September, 2018 due to a sealing drive conducted by Municipal Corporation. A request for cancellation of GST registration was made by assessee but the system was showing an error message.

Thereafter, the assessee’s GST registration was cancelled on ground that assessee had not filed GST returns for a continuous period of six months with retrospective effect. It challenged the retrospective cancellation of registration and filed writ petition.

High Court Held

The Honorable High Court noted that the department cancelled the GST registration with retrospective effect which also covered a period during which assessee had filed GST returns and no reason was provided in the order for action. Therefore, the Court held that the petition was allowed and the assessee’s GST registration can’t be cancelled from retrospective effect from period later than September 2018.