Case Law Details
S S Enterprises Through Its Prop Zahira Begum Vs Commissioner Of Delhi Goods And Service Tax & Anr. (Delhi High Court)
Delhi HC modifies GST registration cancellation date to issuance date of GST registration cancellation order
In the case of S S Enterprises through its proprietor Zahira Begum vs. Commissioner of Delhi Goods and Service Tax & Anr., the Delhi High Court addressed the contentious issue of retrospective cancellation of GST registration and the implications thereof. The petitioner, Zahira Begum, proprietor of M/s S.S Enterprises, challenged two key orders: firstly, the dismissal of her appeal on grounds of limitation, and secondly, the retrospective cancellation of her GST registration with effect from 1st July 2017, as per an order dated 27th June 2019. Additionally, she contested a Show Cause Notice issued on 2nd March 2019, which initiated the process of cancellation.
The petitioner’s firm was initially a partnership that later converted into a proprietorship under Zahira Begum’s name in 2012. The Show Cause Notice cited vague reasons based on a VATI Report claiming the firm was not functioning, without providing specific details or allowing the petitioner an opportunity to object to the retrospective cancellation.
The impugned cancellation order dated 27th June 2019 did not offer clear justification for the retrospective cancellation, stating contradictory reasons regarding the petitioner’s response to the Show Cause Notice. Despite the firm having filed GSTR-1 returns up to March 2019 and showing nil tax dues, the retrospective cancellation was upheld, impacting the petitioner’s ability to claim input tax credit for past transactions.
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