Case Law Details
Sri Sai Vishwas Polymers Vs Commissioner of GST & Anr (Delhi High Court)
The case of Sri Sai Vishwas Polymers vs Commissioner of GST & Anr before the Delhi High Court revolves around the retrospective cancellation of GST registration. The court’s decision provides clarity on the circumstances under which registration can be cancelled retrospectively.
The petitioner, a partnership firm engaged in various business activities, faced the retrospective cancellation of its GST registration. The court scrutinized the grounds for cancellation provided by the authorities and found them lacking in specificity and justification. It emphasized that cancellation with retrospective effect should be based on objective criteria and not merely due to non-filing of returns for a period.
The judgment highlighted the consequences of retrospective cancellation, particularly the denial of input tax credit to the taxpayer’s customers. It underscored that such consequences must be intended and warranted for retrospective cancellation to be justified.
Furthermore, the court addressed procedural irregularities in the issuance of show cause notices and orders, emphasizing the importance of due process. It set aside the orders rejecting the revocation of cancellation and remitted the matter for re-adjudication, ensuring the petitioner’s right to a fair hearing and compliance with legal procedures.
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