Chauhan Construction Co. Vs Commissioner of DGST And Anr (Delhi High Court)
Delhi High Court held that cancellation of GST registration with retrospective effect without providing any intelligible reason for cancellation is unsustainable. Accordingly, impugned cancellation order is void.
Facts- The petitioner has filed the present petition being aggrieved by the cancellation of its Goods and Services Tax (GST) registration in terms of the order dated 05.04.2021. The impugned cancellation order was issued pursuant to the Show Cause Notice dated 26.03.2021.
The petitioner appealed against the impugned cancellation order under Section 107 of the Central Goods and Services Tax Act, 2017 and the Delhi Goods and Services Tax Act, 2017. However, the said appeal was also rejected on the ground that the petitioner did not appear pursuant to the notice served to the petitioner through the GST portal.
Conclusion- Held that the impugned cancellation order is void as it was passed in violation of the principles of natural justice. First, the petitioner was not provided any intelligible reasons for proposing to cancel its GST registration and also was not afforded an opportunity of being personally heard. Additionally, there was no proposed action for cancelling the petitioner’s GST registration with retrospective effect. The impugned cancellation order is also not informed by any reason as it does not set out any reason for cancelling the petitioner’s GST registration.
