Shobha Rani Vs Commissioner of Delhi Goods And Services Tax & Anr. (Delhi High Court)
In the case of Shobha Rani Vs Commissioner of Delhi Goods and Services Tax & Anr., the Delhi High Court addressed the validity of a retrospective Goods and Services Tax (GST) registration cancellation. The petitioner challenged an order dated June 22, 2021, which canceled their GST registration (GSTIN: 07AJJPR3972L1ZI) retroactively from October 26, 2017.
The order under scrutiny lacked specific reasoning for the cancellation, referencing only a Show Cause Notice (SCN) dated February 8, 2021. This notice informed the petitioner about the proposed cancellation due to non-filing of returns over six months but did not propose the retrospective effect of the cancellation nor provide a clear date for personal hearing.
The petitioner argued that they were not given a fair opportunity to contest the retrospective aspect of the cancellation. They claimed that the SCN did not specify a hearing date, making the cancellation unjust. The court concurred, noting that the failure to provide a personal hearing on the retrospective effect of the cancellation violated principles of natural justice.
The petitioner expressed no objection to the cancellation itself but contested the retrospective nature of the order. The respondent’s counsel suggested that the Proper Officer, under Section 29(2) of the Central Goods and Services Tax Act, 2017, should decide the retrospective cancellation issue after a proper hearing.
