GST DAILY – 327 : GST registration can’t be cancelled with retrospective effect just because assessee failed to file returns: HC

Stay Yourself  Updated  on GST

THE HON’BLE DELHI HIGH COURT IN THE CASE OF Alibaba Enterprises V/s Sales Tax Officer Class-II AVATO Ward-83, decided on 1-8-2024

👉 Issue:-

✔️ Can GST registration be cancelled with retrospective effect just only reasons because assessee failed to file returns?

👉 The Hon’ble High Court Judgement:-

✔️ Cancellation of assessee’s GST registration with retrospective effect could not be sustained as SCN issued to assessee did not propose cancellation of GST registration from a retrospective date, which was a violation of principles of natural justice and decision to cancel assessee’s GST registration with retrospective effect was not informed by reason , and thus, order cancelling GST registration was to be modified restricting cancellation of assessee’s GST registration to be effective from 13.11.2023, date on which SCN was issued.

Section 29 of Central Goods and Services Tax Act, 2017