Shakti Metals Through Its Proprietor Mr Prahlad Kumar Sharma Vs Commissioner Central Goods and Services Tax and Ors (Delhi High Court)
In the case of Shakti Metals Through Its Proprietor Mr. Prahlad Kumar Sharma Vs Commissioner Central Goods and Services Tax and Ors, the Delhi High Court addressed the issue of GST registration cancellation due to temporary business suspension caused by ill health. The petitioner, Mr. Prahlad Kumar Sharma, challenged the cancellation of his GST registration, arguing that his business was temporarily inactive due to his illness related to COVID-19. The court found that the cancellation was unjustified as the petitioner had provided sufficient evidence of continued business operations, including property ownership and tax receipts. The court noted that the cancellation order was based on insufficient and improperly communicated grounds, violating principles of natural justice. Consequently, the Delhi High Court restored the petitioner’s GST registration and emphasized that temporary suspension due to health reasons does not warrant cancellation. The court’s decision ensures that such registrations are not cancelled without proper cause and due process.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition, inter alia, impugning the Show Cause Notice dated 26.05.2022 (hereafter the impugned SCN); an order dated 24.06.2022 (hereafter the impugned cancellation order) passed pursuant to the impugned SCN, whereby the petitioner’s Goods and Services Tax (GST) registration was cancelled; and the order dated 04.2023 passed by the Appellate Authority (hereafter the impugned appellate order), whereby the petitioner’s appeal against the impugned cancellation order was rejected. The petitioner prays for restoration of its GST registration.
