Home GST GST Registration Shall Be Cancelled on the Date of Filing of the Application Seeking Cancellation

GST Registration Shall Be Cancelled on the Date of Filing of the Application Seeking Cancellation

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GST Registration Shall Be Cancelled on the Date of Filing of the Application Seeking Cancellation
Delhi High Court's Order for Saroj Gagneja

In its current ruling, the Delhi Excessive Court docket has instructed the Items and Service Tax (GST) registration cancellation, aligning with the date on which the appliance for cancellation of the registration was filed.

The petitioner, Saroj Gagneja, submitting a writ petition contested the directive whereby her GST registration was retroactively revoked. The petitioner had been registered beneath the GST by the identify ‘M/s S. S. Enterprises’ and possessed a Items and Service Tax Identification Quantity since 01.07.2017.

The petitioner determined to stop enterprise actions in January 2020 and utilized on 17.01.2020, in search of the cancellation of her GST registration from that particular date. Nonetheless, the respondent didn’t promptly tackle the request and took greater than six months to reply. It was solely on 19.07.2020 that an officer from the GST division despatched a discover asking for an evidence concerning the revocation of the appliance, to which the petitioner duly replied.

Regardless of the petitioner’s compliance, the respondent did not take quick motion to cancel her GST registration. Ultimately, on 20.09.2021, the appliance requesting the cancellation was rejected with the rationale supplied as “Doc not present on Portal.” Subsequently, the correct officer issued a directive and cancelled the petitioner’s GST registration retroactively from 01.07.2017, citing the absence of a response to the show-cause discover with out offering any particular clarification.

In the course of the courtroom proceedings, Shreya Gagneja, the counsel representing the petitioner, argued that the explanations supplied for cancelling the registration had been unjustified. She contended that the closure of the enterprise in January 2020 and the failure to file GST returns thereafter shouldn’t be thought of ample grounds for cancellation. Moreover, she highlighted that the order lacked correct justification and failed to clarify the retrospective impact.

It was famous by the panel that the failure to file returns after closing the enterprise in January 2020 shouldn’t be thought of ample clarification for cancelling the registration throughout the interval of compliant enterprise operations. Subsequently, the petitioner’s GST registration shouldn’t be revoked, as suggested said within the present trigger discover. The directive cancelling the registration didn’t have correct justification and was liable to be overruled.

After cautious examination of the info and arguments offered, a division bench comprising Justice Vibhu Bakru and Justice Amit Mahajan ordered the revocation of the Items and Service Tax (GST) registration on the identical date as the appliance requesting the cancellation. Rajeev Aggarwal represented the income throughout the courtroom proceedings.

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