HC Set Aside Order Cancelling the GST Registration Due to the Lack of Reasons for Retrospective Cancellation
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- Last Updated on 7 December, 2024
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Case Details: Akash Garments India (P.) Ltd. v. Union of India - [2024] 168 taxmann.com 688 (Delhi)
Judiciary and Counsel Details
- Yashwant Varma & Dharmesh Sharma, JJ.
- N.K. Sharma, Adv. for the Petitioner.
- Ms Shreya Bhardwaj, SPC, Harpreet Singh, SSC, Ms Suhani Mathur and Shivang Chawla, Advs. for the Respondent.
Facts of the Case
The petitioner had moved an application seeking cancellation of its registration. The department issued a notice requiring further details to be submitted, however the petitioner failed to respond to that notice and a final order came to be passed rejecting its application for cancellation. Thereafter, a Show Cause Notice came to be issued seeking cancellation of registration on the ground of failure to furnish return for 6 months and the impugned order was passed cancelling registration of petitioner retrospectively on ground that no response was received from the petitioner.
It filed writ petition against the cancellation order and contended that the order was passed without assigning any reason.
High Court Held
The Honorable High Court noted that the mere existence or conferral of power would not justify a revocation of registration and the order under Section 29(2) must itself reflect the reasons which may have weighed upon the officer to cancel registration with retrospective effect. In the instant case, the impugned order was passed without assigning any reason, therefore, it was held that the impugned order could not be sustained. The Court further held that the cancellation shall come into effect from the date of issuance of SCN i.e. 15.01.2023.
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