Deepali Kapoor Vs Avato Ward-63, State Goods and Services Tax & Another (Delhi High Court)
In a recent decision, the Delhi High Court has modified the effective date of GST registration cancellation for the petitioner, Deepali Kapoor, from a retrospective date to a more recent one. Kapoor had contested the order issued by Avato Ward-63, State Goods and Services Tax (SGST) office, which initially cancelled her GST registration retroactively from July 2, 2017. This decision came after a detailed examination of both the show cause notice issued to Kapoor and her appeal against the retrospective cancellation.
Background of the Case
The petitioner, Deepali Kapoor, filed an appeal against the cancellation of her GST registration, which the authorities had made effective from July 2, 2017. Kapoor’s GST registration was cancelled following a show cause notice (SCN) dated February 3, 2023. In this notice, she was required to provide reasons as to why her registration should not be revoked.
The show cause notice cited her “failure to furnish returns for a continuous period of six months” as the basis for the action. However, Kapoor argued that the notice did not provide adequate justification for cancellation, particularly not one with a retrospective effect. She stated that she had been unable to respond due to financial difficulties and mental health issues.
