Case Law Details
Subhash Kulkarni Vs Union of India Through Secretary Ministry of Finance & Ors. (Delhi High Court)
Introduction: In the case of Subhash Kulkarni Vs Union of India Through Secretary Ministry of Finance & Ors., the Delhi High Court addresses the issue of retroactive cancellation of GST registration due to the mere non-filing of GST returns. The petitioner challenges the retrospective cancellation of their GST registration, arguing that the cancellation order lacks procedural fairness and fails to justify the retrospective effect.
Detailed Analysis: The petitioner, Subhash Kulkarni, contests the order dated 11.11.2022, which retroactively cancelled their GST registration from 01.07.2017. Despite submitting an application for cancellation of registration and complying with subsequent notices, the petitioner’s registration was cancelled with retrospective effect due to alleged non-compliance with filing GST returns.
The court scrutinizes the procedural irregularities in the cancellation process, noting that the order fails to provide adequate reasoning for the retrospective cancellation. It highlights the absence of specific grounds for retroactive action and the petitioner’s lack of opportunity to contest the retrospective cancellation.
Delving into legal provisions, the court emphasizes that GST registration cannot be cancelled retroactively without objective justification. Mere non-filing of GST returns does not automatically warrant retroactive cancellation, especially when the taxpayer was compliant during the relevant period.
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