Case Law Details
Sumeet Singh Vs Commissioner of Delhi Goods And Services Tax And Ors. (Delhi High Court)
In a significant ruling, the Delhi High Court has set a precedent regarding the retroactive cancellation of Goods and Services Tax (GST) registrations. The case of Sumeet Singh vs. Commissioner of Delhi GST brought to light crucial issues surrounding the retrospective cancellation of GST registrations without valid reasons.
The crux of the matter lies in the retrospective cancellation of the petitioner’s GST registration, which was effected with an effective date from July 1, 2017. The petitioner, Sh. Sumeet Singh, challenged this cancellation along with the dismissal of his appeal on grounds of limitation. The court scrutinized the sequence of events leading to the cancellation and the procedural lapses therein.
The court highlighted the deficiencies in the show cause notice issued to the petitioner, emphasizing its failure to provide a cogent reason for the retrospective cancellation. Furthermore, it noted discrepancies in the impugned order, wherein the absence of a reply from the petitioner was contradicted by references to a purported response.
Delving into the legal framework, the court referenced Section 29(2) of the Central Goods and Services Tax Act, 2017, which empowers the proper officer to cancel GST registration retrospectively under specific circumstances. However, it underscored that such cancellations cannot be arbitrary and must be based on objective criteria, not merely non-filing of returns.
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