Home GST GSTIN Cancellation Initially from Date It Was Given Due to Non-filing of GST Return for 6 Month is Invalid

GSTIN Cancellation Initially from Date It Was Given Due to Non-filing of GST Return for 6 Month is Invalid

GSTIN Cancellation Initially from Date It Was Given Due to Non-filing of GST Return for 6 Month is Invalid
Delhi HC’s Order for Balajee Plastomers Private Limited

The Delhi Excessive Court docket has dominated that the cancellation of Items and Service Tax (GST) registration granted to Balajee Plastomers Personal Restricted just isn’t legitimate ab initio, ranging from the date it was initially ordered, because of the non-filing of returns for six months. The petitioner had challenged the impugned order that cancelled their GST registration retrospectively from 01.07.2017.

The petitioner said that they had been registered below the Central Items and Providers Tax Act, 2017 (CGST Act) from 01.07.2017. They continued their enterprise operations and adhered to all of the provisions of the CGST Act after registration, even after compliance, they confronted opposed circumstances in 2019.

Upon receiving the response, the petitioner opted to give up their GST registration and submitted an utility for cancellation on November 28, 2019. The petitioner claimed that the cancellation must be efficient from that date, as they’d fulfilled all their GST obligations for the previous interval and submitted all of the returns earlier than November 2019.

After the respondent issued a discover requesting further details about the cancellation utility, the petitioner failed to offer a response. Because of this, the appliance for cancellation was finally rejected.

Subsequently, on 08.07.2020, the petitioner utilized once more for cancellation of their GST registration with impact from 28.11.2019. The petitioner alleged that respondent No. 2 despatched a discover regarding this utility on 16.09.2020, which was past the stipulated interval. Due to this fact, the petitioner believed their GST registration was cancelled. Nevertheless, their utility for cancellation was disapproved by an order dated 05.11.2020.

Subsequently, the involved officer issued a Present Trigger Discover on 13.01.2021, suggesting the cancellation of the petitioner’s GST registration because of the non-submission of returns for a consecutive six-month interval. Ranging from 13.01.2021, the GST registration was additionally suspended. The disputed order retroactively cancelled the petitioner’s GST registration from 01.07.2017.

The court docket, comprising Justice Vibhu Bakhru and Justice Amit Mahajan, noticed that the impugned order didn’t present any cause for cancelling the petitioner’s registration, other than the non-response to the Present Trigger Discover. The petitioner argued that they’d ceased operations in 2019 and utilized for revocation of their GST registration from 28.11.2019.

Contemplating the absence of a sound cause for revoking the GST registration retroactively from 01.07.2017, the court docket held that respondent No. 2’s directive can’t be upheld. It was famous that the revocation was based mostly on the petitioner’s failure to submit returns for six months, which can’t be grounds for cancelling the GST registration ab initio from the date it was allowed.

Learn Additionally: What’s Amnesty Scheme for GST Returns Non & NIL Filers?

Consequently, the court docket directed that the petitioner’s GST cancellation must be efficient from 28.11.2019 reasonably than 01.07.2017.


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