Shivay Iron Scrap Vs Commissioner of Goods and Service Tax (Delhi High Court)
The petitioner challenged the order dated 24 December 2021 by which its GST registration was cancelled retrospectively. The petitioner had voluntarily applied for cancellation of registration in October 2021 due to the proprietor’s ill-health and old age. Prior to the cancellation order, a Show Cause Notice (SCN) had been issued on 14 December 2021. The cancellation order, however, made the cancellation effective from 11 July 2017.
During an earlier hearing on 10 September 2025, the Court noted that the petitioner approached the Court belatedly, as the cancellation order was from 2021. The petitioner had also filed an appeal before the Appellate Authority but withdrew it in 2023. The writ petition was filed in 2025. The Court directed the petitioner to file an affidavit disclosing turnover details for all relevant financial years, whether any notices regarding Input Tax Credit (ITC) had been received by suppliers or buyers, and the reasons for withdrawing the statutory appeal. The respondent was also asked to obtain instructions regarding any notices issued to the petitioner.
In response, the petitioner filed an additional affidavit detailing its turnover from 2017 to 2021. It stated that the statutory appeal had been withdrawn because it was barred by limitation, and that the consequences of retrospective cancellation had not been fully appreciated. The petitioner also disclosed that one of its customers, Saisha Enterprises, had received a Show Cause Notice treating its ITC as ineligible solely because of the retrospective cancellation of the petitioner’s registration.
