𝐆𝐒𝐓 𝐑𝐞𝐠𝐢𝐬𝐭𝐫𝐚𝐭𝐢𝐨𝐧 𝐜𝐚𝐧𝐧𝐨𝐭 𝐛𝐞 𝐜𝐚𝐧𝐜𝐞𝐥𝐞𝐝 𝐑𝐞𝐭𝐫𝐨𝐬𝐩𝐞𝐜𝐭𝐢𝐯𝐞𝐥𝐲 𝐮𝐧𝐥𝐞𝐬𝐬 𝐞𝐱𝐩𝐥𝐢𝐜𝐢𝐭𝐥𝐲 𝐦𝐞𝐧𝐭𝐢𝐨𝐧𝐞𝐝 𝐢𝐧 𝐭𝐡𝐞 𝐒𝐡𝐨𝐰 𝐂𝐚𝐮𝐬𝐞 𝐍𝐨𝐭𝐢𝐜𝐞 : 𝐃𝐞𝐥𝐡𝐢 𝐇C 🔍💼

Title: Aditya Polymers vs Commissioner of Delhi Goods and Services tax : Delhi HC
CourtCitation: W.P.© 14493/2022
Neutral Citation:2023:DHC:2328-DB

•A Show Cause Notice (SCN) was issued on 11-Dec-2020, proposing the cancellation of GST Registration due to non-filing of returns for continuous 6 months. The GST Registration was also suspended with immediate effect.

•The petitioner did not reply to the SCN. On 15-Jul-2021, the Proper Officer cancelled the GST Registration, effective from the original registration date i.e., 01-Jul-2017.

•The petitioner did not file a Revocation Application U/s 30 against the cancellation but filed an appeal U/s 107. This appeal, filed on 19-Sep-2022, was rejected as it was not filed within the prescribed period.

•Aggrieved by this rejection, the petitioner approached the High Court.

•The High Court observed that the power to cancel the registration from any date, including a retrospective date, must not be arbitrary and must be based on material on record and some rationale. The taxable person must also be put to notice of the proposed action to cancel the registration from a retrospective date.

•In this case, the SCN did not mention that the proper officer proposed to cancel the registration with retrospective effect.