Girik Enterprises Vs Commissioner SGST Delhi And Ors. (Delhi High Court)
In the case of Girik Enterprises Vs Commissioner SGST Delhi And Ors., the Delhi High Court addressed the retrospective cancellation of GST registration. The petitioner’s registration, initially granted on July 1, 2017, was cancelled retrospectively by an order dated June 16, 2020, following a Show Cause Notice (SCN) issued on May 29, 2020. The SCN cited non-compliance with unspecified provisions of the GST Act or rules but failed to detail the specific violations. The petitioner, who had applied for cancellation of his registration due to business discontinuation, challenged the retrospective effect of the cancellation rather than the cancellation itself. The Court found the SCN and the subsequent cancellation order to be deficient, lacking any clear reasoning or justification, thus preventing the petitioner from responding effectively. Consequently, the Court directed that the cancellation be effective from the date of the SCN, May 29, 2020, rather than from the original registration date of July 1, 2017. The ruling underscores the necessity for clear and specific reasoning in SCNs to ensure fairness in legal proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice. The learned counsel for the respondent accepts notice.
