Radha Rani Metal Vs Principal Commissioner of Goods And Service Tax (Delhi High Court)
The Delhi High Court considered a review application filed in relation to its earlier order dated 30 January 2025 in W.P.(C) No.1180 of 2025 concerning cancellation of GST registration. The review applicant sought the exercise of review jurisdiction in connection with the earlier decision delivered in the writ petition.
The matter originated from an order dated 14 October 2024 cancelling the petitioner’s GST registration under the Goods and Services Tax Act with retrospective effect from 14 September 2023. This cancellation order was preceded by a Show Cause Notice (SCN) dated 19 September 2024.
While deciding the writ petition earlier, the Court examined the legality of cancelling GST registration with retrospective effect. In its order dated 30 January 2025, the Court observed that the original Show Cause Notice did not contain reasons supporting the proposal for retrospective cancellation. The Court also noted that the petitioner had not been placed on prior notice that retrospective cancellation was intended. On this basis, the Court held that the action taken by the authorities was invalid.
Accordingly, the Court allowed the writ petition on that ground. It modified the impugned cancellation order by directing that the cancellation of the petitioner’s GST registration would take effect from the date of the Show Cause Notice, i.e., 19 September 2024. Consequently, the portion of the order that made the cancellation effective from 14 September 2023 was quashed.
