Registration not to be cancelled retrospectively when vague SCN is issued and no reasonable opportunity granted to file reply

Last updated: 23 March 2024

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Quick Summary

The Delhi High Court has ruled that GST registration should not be cancelled retrospectively if the show cause notice (SCN) issued is vague and does not provide a clear opportunity to object to a retrospective cancellation. In this case, the court modified the cancellation order to operate prospectively from the date the SCN was issued, highlighting that retrospective cancellation should not be automatic and must consider potential impacts on customers' input tax credit.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of M/s.Friends Media Add Company v. Principal Commissioner of Goods and Service Tax[W.P.(C) No. 1260 of2024 dated February 12, 2024] modified the GST cancellation order to operate prospectively from the date of issuance of the SCN thereby holding that, GST registration should not be cancelled retrospectively when the SCN issued is vague in nature and no opportunity was granted to file objection against retrospective cancellation.

Citation :
W.P.(C) No. 1260 of2024 dated February 12, 2024

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