Raja Abhishek For NIRC 2024
1 day ago
š° šš²š¹šµš¶ šš¶š“šµ šš¼ššæš š„šš¹š¶š»š“: š„š²ššæš¼šš½š²š°šš¶šš² šš®š»š°š²š¹š¹š®šš¶š¼š» š¼š³ šš¦š§ š„š²š“š¶šššæš®šš¶š¼š» šš¹š¹š²š“š®š¹ šŖš¶ššµš¼šš š¦š½š²š°š¶š³š¶š° š”š¼šš¶š°š²!
š¢ The Delhi High Court ruled that GST registrations cannot be cancelled retrospectively unless explicitly mentioned in the Show Cause Notice (SCN). This decision protects businesses from arbitrary cancellations without proper notice.
š šš®š°šš: šš®šš² š§š¶šš¹š²: Aditya Polymers vs Commissioner of Delhi Goods and Services Tax šš®šš² š”ššŗšÆš²šæ: W.P.(C) 14493/2022 šš®šš²: 28-Mar-2023
ššššš²: ā¢ On 11-Dec-2020, an SCN was issued to Aditya Polymers proposing cancellation of GST registration due to non-filing of returns for six consecutive months. The registration was suspended immediately upon the issuance of the notice. ā¢ On 15-Jul-2021, the Proper Officer cancelled the GST registration effective from the original registration date (01-Jul-2017), without prior indication in the SCN that retrospective cancellation would be enforced.
ā¢ The petitioner did not apply for revocation of cancellation under Section 30 but instead filed an appeal under Section 107, which was rejected due to the delay in filing. ā¢ Aggrieved, the petitioner approached the Delhi High Court challenging the retrospective cancellation.
ā šš¶š“šµ šš¼ššæš š¢šÆšš²šæšš®šš¶š¼š»š: The court observed that while Section 29(2) of the GST Act allows the proper officer to cancel registration from any retrospective date, this decision cannot be arbitrary. Importantly, if the cancellation is to take effect from a retrospective date, the taxable person must be notified and given an opportunity to respond.
ā ššš±š“šŗš²š»š: In this case, the SCN did not mention any proposal to cancel the registration with retrospective effect. Thus, the petitioner was deprived of the opportunity to contest the retrospective cancellation. As a result, the Court held that the cancellation would only be effective from 11-Dec-2020, the date the SCN was issued, and not from 01-Jul-2017.
š This ruling highlights the necessity of clear communication and fair opportunity for businesses to defend themselves against retrospective GST registration cancellations. Team GSTpanacea 7503031378
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