Case Law Details
Shree Ram Metal Vs Commissioner of Delhi Goods And Services Tax Act & Anr. (Delhi High Court)
Introduction: The Delhi High Court, in the case of Shree Ram Metal vs Commissioner of Delhi Goods And Services Tax Act & Anr., has pronounced a significant ruling emphasizing that GST registration cannot be cancelled retrospectively without proper justification. This article delves into the details of the case, examining the order, the grounds for cancellation, and the court’s reasoning.
Detailed Analysis: The petitioner contested an order dated 10.03.2023, which cancelled their GST registration retrospectively from 01.07.2017. Additionally, they challenged the show cause notice dated 15.01.2023, leading to the impugned order. The petitioner’s appeal against this order was dismissed due to a purported delay in filing.
The core contention revolved around the cancellation being based on the petitioner’s failure to file returns for a continuous six-month period. However, the petitioner contended that returns were filed until 31.03.2022. The impugned order lacked a clear reason for the retrospective cancellation, merely citing the absence of a response to the show cause notice.
The court referred to Section 29(2) of the Central Goods and Services Tax Act, 2017, which grants discretion to cancel GST registration, even retrospectively. However, the court emphasized that such decisions must be reasoned and not arbitrary. In this case, the absence of any stated reason rendered the retrospective cancellation unjustified.
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