Delhi Enterprises Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court considered a writ petition filed under Article 226 of the Constitution challenging the retrospective cancellation of a GST registration by an order dated 3 October 2023. The petitioner contended that the Show Cause Notice (SCN), which culminated in the impugned order, did not contemplate retrospective cancellation, rendering the order untenable.
Read SC Judgment in this case: GST Registration Challenge Closed as Appeal Time-Barred: SC
The respondent department submitted that the petitioner had already availed statutory remedies. An appeal against the impugned order was filed before the Appellate Authority but was dismissed on 3 September 2024 as barred by limitation. The petitioner thereafter challenged the appellate order by filing a writ petition, which was also dismissed by a Coordinate Bench of the Court on 7 February 2025 on the same ground—non-maintainability due to limitation.
The Court referred to the earlier decision of the Coordinate Bench, which recorded the factual background concerning the cancellation of GST registration on the basis that the firm could not be traced due to an incomplete or unclear address. The cancellation order had been passed with retrospective effect from the date of registration. The appeal against that cancellation was filed beyond the time prescribed under Sections 107(1) and 107(4) of the CGST Act and was consequently dismissed as time-barred. The Coordinate Bench further held that the statutory scheme under the CGST Act prescribes a special limitation regime and excludes the application of the Limitation Act beyond the condonable period expressly provided. Accordingly, delayed appeals could not be entertained, and writ jurisdiction could not be used to bypass statutory timelines.
