Mohit Enterprises Vs Commissioner of State GST And Vat Department of Trade And Taxes Delhi (Delhi High Court)
Delhi High Court, in Mohit Enterprises vs. Commissioner of State GST and VAT Department of Trade and Taxes, Delhi [WP (C) 1086/2025], ruled that the cancellation of GST registration cannot be given retrospective effect without due notice. The case arose when the GST department canceled the registration of Mohit Enterprises on December 28, 2021, with retrospective effect from July 1, 2017, due to the alleged non-filing of returns for over six months. The court found that the department’s action lacked proper reasoning and procedural compliance.
The key legal issue was whether the department was justified in imposing retrospective cancellation when the show-cause notice (SCN) issued on November 11, 2021, did not explicitly mention such intent. The assessee argued that there was no due notice regarding retrospective cancellation, making the order arbitrary. The appellate authority had earlier upheld the cancellation, refusing to condone the delay in appeal under Section 107(4) of the CGST Act, which the assessee contested as overly rigid. The department, on the other hand, defended its action, arguing that continued non-compliance with return filing warranted cancellation under Section 29(2) of the CGST Act.
