HC cancels GST Registration with effect from date of cancellation Application

Veetrag Traders Vs Commisiioner of SGST Delhi & Ors (Delhi High Court)

HC cancels GST Registration with effect from the date when Petitioner applied for cancellation of GST registration

The Delhi High Court recently delivered a significant judgment in the case of Veetrag Traders versus the Commissioner of SGST Delhi and Others, wherein it cancelled the GST registration of the petitioner, Veetrag Traders, with effect from the date of their application for cancellation.

The petitioner had challenged two orders – one dated 20.03.2023, which dismissed their appeal seeking restoration of the GST registration on the ground of limitation, and another dated 13.08.2020, which retrospectively cancelled their GST registration from 01.07.2017. The court also considered a Show Cause Notice dated 13.08.2020 issued to the petitioner.

Veetrag Traders, a trading firm engaged in the sale of craft paper, had applied for the cancellation of its GST registration on 01.10.2019 citing business closure. However, subsequent events, including a rejection of the cancellation application on 16.06.2020 and issuance of a Show Cause Notice on 18.02.2021, raised concerns regarding procedural fairness.

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