Case Law Details
Ansh Telecom through Its Proprietor Sarita Rani Vs Commissioner of DGST And Anr. (Delhi High Court)
Ansh Telecom, represented by its proprietor Sarita Rani, approached the Delhi High Court challenging the retrospective cancellation of its GST registration, seeking relief from the adverse order issued by the authorities. This article provides a detailed analysis of the court’s judgment and its implications.
The petitioner, Ansh Telecom, contested the cancellation of its GST registration, which was made retrospective from 01.07.2017, through a show cause notice dated 02.09.2021. The petitioner argued that neither the show cause notice nor the subsequent order provided adequate reasons for the retrospective cancellation. Additionally, the petitioner had no opportunity to object to the retrospective nature of the cancellation.
The court observed that cancellation of GST registration with retrospective effect must be based on objective criteria and cannot be mechanical. It emphasized that non-filing of returns for a period does not automatically warrant retrospective cancellation, especially when the taxpayer has been compliant otherwise. The court also highlighted the adverse consequences for the taxpayer’s customers due to retrospective cancellation, stressing the need for such action to be warranted and reasonable.
Both the petitioner and the department expressed the desire for cancellation of the GST registration, albeit for different reasons. Considering the petitioner’s closure of business activities since 31.03.2021 and the absence of an application for cancellation, the court modified the impugned order. The registration was now deemed cancelled from the date of the show cause notice, i.e., 02.09.2021, providing relief to the petitioner.
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