JSD Traders LLP Vs Additional Commissioner (Delhi High Court)
Delhi High Court held that retrospective cancellation of GST registration without assigning reason in SCN and in final order is unjustifiable. Accordingly, writ allowed and order cancelling registration quashed.
Facts- The challenge is principally laid to the order of 20 March 2024 pursuant to which the Goods and Services Tax registration of the writ petitioner has come to be cancelled with retrospective effect from 09 November 2017.
Conclusion- Held that neither the SCN nor the final order alludes to or rests upon any material on the basis of which the respondent would have formed the opinion that Section 29(2)(e) of the Central GST Act, 2017 was violated nor did it embody an intent of a proposed retrospective cancellation of the GST registration of the petitioner.
Held that that in the absence of reasons having been assigned in the original SCN in support of a proposed retrospective cancellation as well as a failure to place the petitioner on prior notice of such an intent clearly invalidates the impugned action. We are thus of the considered opinion that the writ petition is entitled to succeed on this short ground alone. This, however, would be without prejudice to the right of the respondent to continue the SCN proceedings on the allegation of the initial registration having been obtained by practise of fraud or misrepresentation subject to the condition that the petitioner shall be duly apprised of the material on the basis of which that opinion has been formed.
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