Case Law Details
Radhey Trading Company Vs Principal Commissioner of Goods And Service Tax (Delhi High Court)
Introduction: The case of Radhey Trading Company versus the Principal Commissioner of Goods and Service Tax has been a focal point for the Delhi High Court, addressing the cancellation of GST registration with retrospective effect. The court, in its judgment, emphasized the importance of providing sufficient details in the show cause notice and the order of cancellation.
Detailed Analysis: Radhey Trading Company obtained GST registration on 12.05.2022, claiming to be a supplier of plastic granules and PVC Dana. The show cause notice, issued on 10.07.2023, sought cancellation based on Section 29(2)(e) of the Goods & Services Tax Act, 2017, citing registration obtained through fraud, willful misstatement, or suppression of facts.
However, a critical analysis revealed significant flaws in the show cause notice and the subsequent cancellation order. The notice lacked specificity regarding the alleged fraud or misstatement, and crucially, it did not notify the petitioner of the retrospective cancellation.
The order of cancellation, dated 25.08.2023, provided no reasoning, details, or discussion but merely stated the effective date as 13.05.2022. The court found both the notice and the order unsustainable, emphasizing that they should be self-contained and not necessitate visits to online portals for information.
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