Home GST GST Registration cannot be cancelled retrospectively for non-filing of Returns: HC [Read Order]

GST Registration cannot be cancelled retrospectively for non-filing of Returns: HC [Read Order]

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GST Registration cannot be cancelled retrospectively for non-filing of Returns: HC [Read Order]

GST Registration can’t be cancelled retrospectively for non-filing of Returns: HC [Read Order]

The Delhi Excessive Courtroom within the matter of M/S R.Ok. METAL INDUSTRIES Vs. COMISSIONER OF GST AND ANR. has held that GST Registration can’t be cancelled retrospectively for non-filing of Returns.

The Related Textual content of the Judgment are as follows:

The petitioner filed this case to problem a judgment dated 28.09.2019 (hereinafter ‘the impugned order’) that cancelled the petitioner’s GST registration with retrospective impact from 01.07.2017. The impugned order doesn’t state why the petitioner’s GST registration was cancelled, but it surely does allude to the Present Trigger Discover dated September 26, 2019 (hereinafter ‘SCN’).

The correct officer had issued the SCN proposing to terminate the petitioner’s GST registration for the reason that petitioner had not filed returns for six months in a row. The petitioner responded to the SCN by alleging that the agency was closed in September 2018 on account of an East Delhi Municipal Company sealing drive. The petitioner additionally alleged that an try was made to give up the petitioner’s GST registration however that the system displayed an error message. The petitioner additionally provided a replica of the letter indicating that the petitioner requested cancellation of the GST registration.

Part 29(2) of the Central Items and Providers Tax Act, 2017 authorizes the right official to cancel the registration at any time, even retrospectively, if the authorities deem it needed. The discretion to terminate the registration with a retrospective affect, however, can’t be exercised arbitrarily. The first grounds for looking for to cancel the petitioner’s GST registration on this case was that the petitioner had not filed the returns for a steady interval of six months. Nevertheless, the registration has been cancelled for the interval throughout which the petitioner filed the GST returns. As beforehand acknowledged, the impugned ruling supplies no justification for cancelling the petitioner’s GST registration, a lot much less the rationale for doing so with retrospective impact.

In view of the above, the current petition is allowed. We direct that the petitioner’s GST registration be cancelled from September, 2018. Nevertheless, it’s clarified that this may not preclude the respondents from initiating any proceedings in case the petitioner has violated any statutory provisions.

For Official Judgment Obtain PDF Given Under:

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