Alibaba Enterprises Vs Sales Tax Officer (Delhi High Court)
The Delhi High Court reviewed the cancellation of GST registration for Alibaba Enterprises, originally effective from July 1, 2017, based on a Show Cause Notice (SCN) issued on November 13, 2023. The petitioner contested the cancellation, arguing that the reasons provided in the order were insufficient and unclear, referencing incorrect rules and failing to address specific discrepancies. The Court found that the cancellation order was unjustifiable, as it was based on vague reasoning and lacked a proper proposal for retrospective cancellation. Consequently, the Court modified the order to be effective only from the date of the SCN, November 13, 2023, and emphasized that future actions should comply with legal standards.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. The petitioner has filed the present petition, inter alia, impugning the Show Cause Notice dated 13.11.2023 (hereafter the impugned SCN) whereby the petitioner was called upon to show cause why its GST registration be not cancelled. The petitioner also impugns the order dated 05.02.2024 (hereafter the impugned order) whereby the petitioner’s GST registration was cancelled with retrospective effect, that is, from 01.07.2017.
2. The petitioner was called upon to show cause as to why its GST registration be not cancelled for failure to furnish the returns for a continuous period of six months. In terms of the impugned SCN, the petitioner was called upon to furnish the reply within thirty days from the date of the receipt of the notice and to appear before the concerned Proper Officer on 11.12.2023. Additionally, the petitioner’s GST registration was suspended from the date of the impugned SCN, that is, 13.11.2023.
