Shiva Enterprises Vs Principal Commissioner (Delhi High Court)
The Delhi High Court delivered its judgment in a petition filed by Shiva Enterprises seeking cancellation of its Goods and Services Tax (GST) registration effective from 30th June, 2025. The petition, initially appearing routine, revealed significant discrepancies indicating fraudulent availing of Input Tax Credit (ITC) by the petitioner. Shiva Enterprises had obtained GST registration on 7th August, 2024, and filed a request for cancellation on 4th July, 2025. The GST Department issued a notice on 9th July, 2025 seeking details, which were provided, but no action was taken, prompting the petitioner to approach the Court.
The Department opposed the petition, noting that Shiva Enterprises had a substantial turnover exceeding ₹7 crores within six to seven months but had not paid any GST in cash. The Court directed the petitioner’s proprietor, Mr. Manish Kumar Jha, to appear in person and file an affidavit detailing turnover, GST deposited, and ITC availed. Returns for the period were also required to be placed on record.
In the affidavit, Mr. Jha declared that from 7th August, 2024, to 4th July, 2025, the firm had a turnover of ₹5,95,19,520 and had availed ITC of ₹1,07,13,514. The affidavit also stated that no cash GST was deposited, and NIL returns were filed from July onwards. On further inquiry, Mr. Jha mentioned depositing only ₹98,600 on 27th October, 2025.
