Case Law Details
R8 Space Design Pvt Ltd Vs Principal Commissioner State Tax Delhi & Anr (Delhi High Court)
In a recent case before the Delhi High Court, R8 Space Design Pvt Ltd challenged the retrospective cancellation of its GST registration by the Principal Commissioner State Tax Delhi & Anr. The petitioner contested the lack of reasons provided for the retrospective cancellation and the effective date chosen for cancellation.
Background: R8 Space Design Pvt Ltd, engaged in providing design services, received a show cause notice dated 19.11.2020, citing non-filing of returns for a continuous period of six months as grounds for potential cancellation of their GST registration. Subsequently, their registration was cancelled retrospectively from 01.07.2017, with no clear explanation provided in either the notice or the cancellation order.
Contention of the Assessee: R8 Space Design Pvt Ltd argued against the retrospective cancellation, emphasizing the lack of reasons provided in both the show cause notice and the cancellation order. They contended that they were not afforded the opportunity to object to the retrospective cancellation, thereby denying them procedural fairness.
Contention of Revenue: The Revenue sought retrospective cancellation of the GST registration due to non-compliance with filing returns. However, they failed to provide clear and substantive reasons for the retrospective cancellation in either the notice or the cancellation order.
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