Non-Filing of Returns Doesn’t Justify retrospective GST Registration Cancellation

Sumit Enterprises Vs Commissioner of Delhi Goods And Services Tax Anr (Delhi High Court)

Introduction: This article explores the case of Sumit Enterprises vs. Commissioner of Delhi Goods And Services Tax Anr, where the Delhi High Court scrutinized the retrospective cancellation of GST registration. The court analyzed the rejection of the cancellation application and the subsequent cancellation order, emphasizing the importance of furnishing required details and the proper officer’s objective criteria for retrospective cancellation.

Detailed Analysis:

1. Background of the Case: The petitioner, Sumit Enterprises, challenges the rejection of its application for GST registration cancellation on 03.2021 and the subsequent cancellation order on 27.04.2022, with retrospective effect.

2. Cancellation Application Rejection: The petitioner had applied for cancellation, citing the closure of its business during the COVID period. However, the application was rejected on 04.03.2021, as the petitioner failed to furnish details regarding the value of raw material stock, capital goods, and stock position.

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