Case Law Details
Balajee Plastomers Private Limited Vs Commissioner Of Delhi Gst & Anr. (Delhi High Court)
Introduction: The Delhi High Court recently ruled on a significant case, Balajee Plastomers Private Limited vs Commissioner Of Delhi GST & Anr. The court examined the validity of canceling GST registration retrospectively from the date of grant due to non-filing of returns for six months.
Detailed Analysis: The petitioner’s GST registration, granted from 01.07.2017, faced cancellation in an order dated 29.01.2021. The petitioner, having ceased business in 2019, applied for voluntary cancellation on 28.11.2019. Despite filing returns for the prior period and discharging GST liabilities, the initial application was rejected on 08.07.2020.
Respondent no.2’s subsequent notice on 16.09.2020 and the petitioner’s perception of cancellation led to a reapplication on 08.07.2020. However, rejection followed on 05.11.2020. The Show Cause Notice (SCN) on 13.01.2021 highlighted the non-filing of returns for six months as the basis for cancellation, leading to the suspension of GST registration from 13.01.2021.
The court noted procedural irregularities in the SCN, lacking a specified date for the personal hearing and not proposing retrospective cancellation. The impugned order, without providing reasons, retroactively canceled the registration from 01.07.2017.
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