Case Law Details
Good Life Zip India Vs Commissioner of Delhi Goods And Service Tax & Anr (Delhi High Court)
In case of Good Life Zip India Vs. Commissioner of Delhi Goods and Service Tax & ANR (W.P.(C) 3931/2024 & & CM APPL. 16203/2024), Delhi High Court held that Merely, because a taxpayer has not filed the returns for some period does not mean that the taxpayer’s registration is required to be cancelled with retrospective date.
Fact of the case:- Petitioner was engaged in the business of trading of Garments and ZIP and possessed GST registration. The Show Cause Notice issued to the Petitioner seeking to cancel its registration stating an observation “failure to furnish returns for a continuous period of six months”. However, the said Notice does not give the name of the officer or place where the petitioner has to appear. Further, the said Show Cause Notice also does not put the petitioner to notice that the registration is liable to be cancelled retrospectively. the petitioner had no opportunity to even object to the retrospective cancellation of the registration.
Court finding and conclusion:
The Show Cause Notice and the impugned order are bereft of any details accordingly the same cannot be sustained and neither the Show Cause Notice, nor the order spell out the reasons for retrospective cancellation. the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. Registration cannot be cancelled with retrospective effect mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. Merely, because a taxpayer has not filed the returns for some period does not mean that the taxpayer’s registration is required to be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant.
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