The Delhi High Court has quashes retrospective GST registration cancellations citing lack of reasons in Show Cause Notice (SCN).

The bench of Justice Yashwant Varma and Justice Harish Vaidyanathan Shankar observed that absence of reasons having been assigned in the original SCN in support of a proposed retrospective cancellation as well as a failure to place the petitioner on prior notice of such an intent clearly invalidates the GST Registration Cancellation with retrospective effect.

The petitioner/assessee has challenged the order pursuant to which the Goods and Services Tax  registration of the writ petitioner has come to be cancelled with retrospective effect from 09 November 2017. 

The petitioner submitted that SCN was duly served, the petitioner does not appear to have filed a response and which led to the passing of the final order dated 20 March 2024.

The petitioner contended that neither the SCN nor the final order alludes to or rests upon any material on the basis of which the respondent would have formed the opinion that Section 29(2)(e) of the Central GST Act, 2017 was violated nor did it embody an intent of a proposed retrospective cancellation of the GST registration of the petitioner.

The court allowed the writ petition and quashed the order insofar as it proceeds to cancel the registration of the petitioner from a retrospective date. The respondent/department shall now proceed to adjudicate the SCN afresh after affording an opportunity of hearing to the writ petitioner. 

Case Details

Case Title: JSD Traders LLP Versus Additional Commissioner, Cgst & Anr.

Case No.: W.P.(C) 2608/2025

Date: 03.03.2025

Counsel For Petitioner: Rana Gurtej Singh

Counsel For Respondent: Sushila Narang

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