Gaurav Auto (India) Vs Principal Commissioner of Goods and Service Tax North Delhi (Delhi High Court)
Delhi High Court held that GST registration of the taxpayer cannot be cancelled with retrospective date merely because the taxpayer has not filed the returns for some period. Accordingly, order cancelling GST registration set aside.
Facts- The present petition has been filed by the Petitioner challenging the order dated 22nd November, 2024 by which the Goods and Services Tax (“GST”) Registration of the Petitioner has been cancelled retrospectively with effect from 29th December, 2017.
Conclusion- In Delhi Polymers vs Commissioner, Trade and Taxes & Anr. it is held that in terms of Section 29(2) of the Act, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. Registration cannot be cancelled with retrospective effect mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. Merely, because a taxpayer has not filed the returns for some period does not mean that the taxpayer’s registration is required to be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant. Accordingly, the impugned order dated 22nd November, 2024 stands set aside.
