Elasto Rubber Pvt Ltd Vs Commisioner of SGST Delhi & Ors (Delhi High Court)
In the case of Elasto Rubber Pvt Ltd Vs Commissioner of SGST Delhi & Ors before the Delhi High Court, the petitioner challenged an order that rejected their GST appeal due to a delay in filing. The petitioner, registered under GST since July 1, 2017, claimed that while they had been compliant until 2021, certain medical issues and the COVID-19 pandemic led to non-compliance in filing returns for 2021-22. A Show Cause Notice (SCN) was issued on October 8, 2022, threatening cancellation of the GST registration due to the failure to file returns for six months. The petitioner stated that they did not receive this notice and thus could not respond, resulting in their GST registration being canceled with retrospective effect from July 1, 2017.
The petitioner contended that the retrospective cancellation of the GST registration was arbitrary and unjustified, as it also affected periods during which they had been compliant. The SCN did not specify that the cancellation would be retrospective, nor did the cancellation order provide reasons for this. The petitioner argued that this lack of clarity and justification in the orders violated their rights, as they were not given a fair opportunity to respond or correct their non-compliance.
