Kalpana Cables Products Pvt. Ltd. Vs Commissioner, Department of Trades And Taxes & Anr (Delhi High Court)
Introduction: The recent judgment by the Delhi High Court in the case of Kalpana Cables Products Pvt. Ltd. vs Commissioner, Department of Trades and Taxes & Anr sheds light on the cancellation of taxpayer registration. The court emphasized that registration cannot be cancelled retrospectively without valid reasons, highlighting the importance of objective criteria in such decisions.
Fact of the case:- Petitioner is a private limited company and was engaged in the business of manufacturing of PVC copper wire and also possessed GST Registration under the Central Goods and Services Tax Act, 2017. Petitioner applied for cancellation of GST registration on 21.05.2019 on the ground of closure of business. Notice issued to the petitioner seeking additional information and documents relating to application for cancellation of registration. And application is rejected.
Further, Show Cause Notice was issued to the Petitioner seeking cancellation of GST registration without specifying any cogent reasons. However, the said Notice did not bear the date and time whereby the Petitioner was required to appear for personal hearing. So GST Registration of the petitioner was cancelled retrospectively with effect from 01.12.2017.
Court Finding and conclusion.-
