Green Work Metal Vs Principal Commissioner of GST & Anr. (Delhi High Court)
In a recent judgment, the Delhi High Court modified the cancellation date of GST registration for Green Work Metal, a business dealing in copper-related goods. The petitioner, Green Work Metal, challenged the retrospective cancellation of its GST registration to 11.09.2017, seeking instead an effective cancellation date of 16.01.2021, the date on which the petitioner originally applied for cancellation.
Case Background
Green Work Metal, engaged in trading stranded wire, cable, plated bands, and other copper articles, had registered under the Goods and Services Tax (GST) Act, 2017. On 16.01.2021, the petitioner applied to cancel this registration due to business discontinuation. The respondent, Principal Commissioner of GST, issued a notice on 18.01.2021, requesting additional information, which was followed by a Show Cause Notice (SCN) on 29.01.2021. This SCN stated concerns about tax collection and payment failures, prompting a potential cancellation of registration.
Respondent’s Actions and Issues Raised
The petitioner’s application for GST cancellation was initially rejected on 27.01.2021. However, the rejection order did not provide specific reasons for dissatisfaction with the petitioner’s response. Subsequently, on 08.02.2021, the GST registration was cancelled with retrospective effect from 11.09.2017, citing no response to the SCN as justification. The petitioner argued that there was no prior indication in the SCN of the intention to apply retrospective cancellation, depriving them of a fair opportunity to contest it.
