Case Law Details
Himanshu Goyal Proprietor of M/s Raj And Co Vs Principal Commissioner State GST. Delhi And Anr (Delhi High Court)
Introduction: In a significant judgment, the Delhi High Court addressed the issue of the cancellation date for GST registration in the case of Himanshu Goyal, Proprietor of M/s Raj And Co vs. Principal Commissioner State GST, Delhi, and Anr. This ruling, dated 12.10.2022, sheds light on the proper procedure for cancelling GST registration and the importance of providing taxpayers with a fair opportunity to respond to Show Cause Notices (SCN).
Detailed Analysis: The petitioner, engaged in the business of trading household edible items, had his GST registration cancelled retrospectively from 08.06.2018, as per the impugned order. The petitioner had closed his business in June 2022, and a Show Cause Notice for non-filing of returns was issued on 18.07.2022. However, this notice lacked crucial details such as the date, time, venue for appearance, and even the issuing officer’s name and designation, raising concerns about its adequacy and fairness.
The Delhi High Court observed that Section 29(2) of the Central Goods and Services Tax Act, 2017 allows for retrospective cancellation of GST registration, but such decisions must not be subjective and should rely on objective criteria. The court highlighted that retrospective cancellation could deny the taxpayer’s customers the input tax credit availed, suggesting that the implications of such actions must be carefully considered.
Interestingly, both the petitioner and the respondent sought the cancellation of the GST registration, albeit for different reasons. Acknowledging this mutual desire, the court modified the impugned order to set the effective cancellation date as 18.07.2022, aligning it with the date of the Show Cause Notice and the suspension of registration.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
