Feron Life Sciences Pvt Ltd Vs Commissioner (Delhi High Court)
The case of Feron Life Sciences Pvt Ltd Vs Commissioner before the Delhi High Court revolves around the contentious issue of retrospective cancellation of GST registration due to alleged failure to file returns timely. The petitioner, a private limited company engaged in trading of medical products, challenged the legality of the retrospective cancellation imposed by the Department of Trade and Taxes, Government of Delhi.
The crux of the matter lay in the show cause notice (SCN) issued to the petitioner on 09.03.2021, and the subsequent order dated 28.12.2021, which cancelled the petitioner’s GST registration retrospectively from 02.07.2017. The High Court scrutinized the procedural fairness and substantive reasons behind the retrospective cancellation. It noted that while the SCN cited failure to file returns timely, it did not provide a specific date for a personal hearing, thus denying the petitioner an opportunity to present their case adequately.
The Court emphasized that the cancellation of GST registration with retrospective effect should be justified by valid reasons and not be arbitrary. The petitioner argued that while they accepted the cancellation, the retrospective nature unfairly penalized them for a period when returns were actually filed.
