Case Law Details
Bijender Thakur Vs Commissioner of GST & Ors. (Delhi High Court)
Introduction: The case of Bijender Thakur vs Commissioner of GST & Ors. before the Delhi High Court revolves around the retrospective cancellation of GST registration. The court examined the legality of canceling registration from a past date, emphasizing the necessity of objective criteria for such actions.
Detailed Analysis: Bijender Thakur contested an order cancelling his GST registration retrospectively from 15.07.2017, citing lack of reasons and procedural irregularities. Despite Thakur’s non-response to the Show Cause Notice, the court observed deficiencies in the notice and the subsequent order.
Delhi HC highlighted Section 29(2) of the CGST Act, empowering the proper officer to cancel registration retrospectively based on objective criteria. The court cautioned against mechanical cancellations solely due to non-filing of returns, stressing the need for proper justification.
Moreover, the court addressed the consequences of retrospective cancellation, particularly its impact on input tax credit for Thakur’s customers. While acknowledging the department’s concerns, the court emphasized the necessity of weighing such implications before retrospective action.
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