Delhi HC invalidates retrospective GST cancellation for lack of reasoning in SCN & prior notice

Grand Auto Capital Vs Commissioner of Delhi Goods and Service Tax & Anr. (Delhi High Court) Delhi High Court has set aside the retrospective cancellation of Grand Auto Capital’s GST registration, ruling that the cancellation order lacked proper reasoning and prior notice. The cancellation, which was backdated to April 1, 2022, stemmed from a Show Cause Notice (SCN) issued on May 16, 2024, which did not indicate an intent for retrospective application. The court emphasized that under Section 29 of the Central Goods and Services Tax (CGST) Act, 2017, the power to cancel registration retros...