Mukesh Kumar Singh Vs Commissioner Of Delhi GST And Ors (Delhi High Court)
The case of Mukesh Kumar Singh vs Commissioner of Delhi GST and Others brings to light the complexities surrounding retrospective cancellation of GST registration and its ramifications, particularly the denial of Input Tax Credit (ITC) to customers.
The petitioner contested the retrospective cancellation of their GST registration, arguing that they were not adequately informed or given a fair opportunity to respond to the Show Cause Notice. The Court observed discrepancies in the issuance of the notice and the subsequent order, highlighting procedural lapses and lack of substantive reasoning for the cancellation decision.
Furthermore, the judgment underscores the significance of Section 29(2) of the Central Goods and Services Tax Act, emphasizing that cancellation with retrospective effect should be based on objective criteria and not merely on non-filing of returns. The Court elucidates that such cancellations must be warranted, especially considering the adverse impact on the taxpayer’s customers, who are denied ITC for the affected period.
The conflicting intentions of both the petitioner and the respondent regarding GST registration cancellation are acknowledged, leading to the modification of the impugned order. The Court directs the cancellation of registration from the date of the Show Cause Notice issuance, aligning with the petitioner’s cessation of business activities.
