The Delhi High Court has held that the absence of reasons in original Show Cause Notice (SCN) supporting of retrospective GST cancellation invalidates cancellation.
The bench of Justice Yashwant Varma and Justice Harish Vaidyanathan Shankar has observed that absence of reasons in the original SCN in support of a proposed retrospective cancellation as well as a failure to place the petitioner on prior notice of an intent clearly invalidates the action.
The petitioner challenged the validity of the final order in terms of which its Goods and Services Tax1 registration came to be cancelled with retrospective effect from 14 September 2023.
The proceedings had come to be initiated pursuant to a Show Cause Notice. The notice embodied no intent or disclosure of the respondents/department contemplating cancellation from a retrospective date.
The court allowed the writ petition by modifying the order and providing that the cancellation of the petitioner’s GST registration shall come into effect from the date of the SCN.
Case Details
Case Title: M/S Radha Rani Metal Versus Principal Commissioner Of Goods And Service Tax
Case No.: W.P.(C) 1180/2025
Date: 30/01/2025
Counsel For Petitioner: Pranay Jain
Counsel For Respondent: Aakarsh Srivastava
