Registration should not be cancelled retrospectively for the period when the taxpayer has fulfilled compliance requirements

Last updated: 27 January 2024

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Quick Summary

The Delhi High Court has ruled that GST registration should not be cancelled retrospectively for periods where a taxpayer has fulfilled their compliance obligations. In the case of Sharda Metal Works, the court set aside a retrospective cancellation notice and order, finding them lacking in proper reasoning. The court emphasised that registration cancellation, even retrospectively, requires objective criteria and cannot be done mechanically, especially when returns have been filed and the taxpayer was compliant.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of Sharda Metal Works v. Commissioner of Central Goods and Services Tax [W.P.(C) NO. 16190 OF 2023 dated January 4, 2024]disposed of the writ petition, thereby setting aside the Show Cause Notice and Order of cancellation of Assessee GST Registration as the aforesaid Notice and Order is bereft of any proper reasoning. Hon'ble High Court further stated that the registration should not be cancelled retrospectively for the period when the returns have been filed and the taxpayer was compliant.

Citation :
W.P.(C) NO. 16190 OF 2023 dated January 4, 2024

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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