Sarla Enterprises Vs Commissioner of SGST Delhi & Anr. (Delhi High Court)
The Delhi High Court considered a challenge to an order dated 27 December 2024 whereby the petitioner’s GST registration was cancelled under Rule 22. The cancellation was based on the petitioner’s failure to file returns within the prescribed time under the GST law.
The petitioner contended that although the show cause notice dated 5 November 2024 referred to non-filing of returns for a continuous period of six months preceding the notice and suspended the registration with effect from 5 November 2024, it did not indicate that the registration could be cancelled retrospectively. However, the impugned order cancelled the registration with retrospective effect from 1 April 2020.
The petitioner submitted that he was willing to file all pending returns and continue filing regular returns in future. It was also stated that the delay in filing returns occurred because the petitioner was suffering from cancer, and medical documents were produced in support of this contention.
The respondents opposed the petition, arguing that an alternative remedy was available and that the petition had been filed belatedly. It was further submitted that the medical records did not relate to the period during which the returns remained unfiled and that the cancellation order was justified.
