Case Law Details
Laxmi Jain Vs Principal Commissioner of Delhi Goods And Services Tax & Anr. (Delhi High Court)
In a recent case, Laxmi Jain challenged the retrospective cancellation of their GST registration by the Delhi High Court. The court’s ruling sheds light on the legalities surrounding GST registration cancellations and the necessity for objective criteria in such decisions.
Detailed Analysis
The petitioner, Laxmi Jain, contested the cancellation of their GST registration, which was backdated to 01.07.2017, through an order dated 26.09.2020. The court highlighted discrepancies in the cancellation process, notably the lack of reasons provided for the retrospective cancellation. Despite the petitioner’s submission of an application for cancellation in May 2019, the registration was canceled with effect from July 2017, without proper justification.
Furthermore, the court observed that the show cause notice failed to inform the petitioner about the possibility of retrospective cancellation, denying them the opportunity to respond adequately. The absence of detailed reasons for the cancellation, both in the notice and the order, raised concerns about the procedural fairness of the decision.
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