In a significant ruling, the Delhi High Court has addressed the issue of GST registration cancellation, with both the petitioner and respondent involved in the case. The judgement provides clarity on the criteria for retrospective cancellation and the obligations to be met under Section 29 of the CGST Act, 2017. Stay updated on this legal development involving parties in the GST registration dispute.
Analysis
- The retrospective cancellation of GST registration from 01.07.2017 is challenged
- The Show Cause Notice dated 02.03.2019 is also challenged in the petition
- Retrospective cancellation of GST registration is only warranted when intended consequences are justified.
- Both the Petitioner and the Respondent seek cancellation of the GST registration, albeit for different reasons.
- The Petitioner’s request for cancellation of GST registration as of 27.06.2019 is granted, with the Petitioner to fulfill necessary compliances per Section 29 of the CGST Act, 2017.
Decision
- Respondents are not precluded from taking steps for recovery of tax, penalty, or interest due from the subject firm.
- Steps can include retrospective cancellation of GST registration after issuing a proper Show Cause Notice and complying with natural justice.
- Petition is disposed of accordingly as the above terms cannot be sustained.
Case Title: S S ENTERPRISES THROUGH ITS PROP ZAHIRA BEGUM Vs. COMMISSIONER OF DELHI GOODS AND SERVICE TAX & ANR. (2024:DHC:4102-DB)
Case Number: W.P.(C)-1539/2024
