Sparkle Gold Vs Commissioner of Delhi Goods And Services Tax And Another (Delhi High Court)
Delhi High Court has directed a change in the effective date of GST registration cancellation for “Sparkle Gold,” a firm operating through its partner, Brijesh Jaiswal. The court modified the retrospective cancellation order, setting the effective date to February 1, 2023, as initially requested by the petitioner, rather than September 6, 2018, as stipulated in the impugned order.
Sparkle Gold had sought to cancel its GST registration from February 1, 2023, citing difficulties in business operations. This application was filed on February 16, 2023. However, a Show Cause Notice was later issued on April 5, 2024, on the grounds of non-filing of returns for the preceding six months. The initial application for cancellation was rejected on April 8, 2024. Subsequently, due to the petitioner’s failure to reply to the Show Cause Notice, an order dated May 8, 2024, was passed, retrospectively cancelling the GST registration from September 6, 2018.
The High Court observed that the impugned order of retrospective cancellation was passed without proper notice to the petitioner. Furthermore, the court noted that since the petitioner had already sought cancellation of GST registration from February 1, 2023, the requirement for filing returns for subsequent periods would not logically arise.
