Retrospective cancellation of registration without a valid reason is arbitrary exercise of power

Last updated: 11 August 2023
Quick Summary
The Delhi High Court has ruled that cancelling GST registration retrospectively without a valid justification is an arbitrary use of power. In this case, a taxpayer applied for cancellation due to business closure, but their registration was cancelled from a date prior to their application. The court found no material to support this retrospective cancellation and stated that the taxpayer should not be required to file returns for periods after closing their business.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the matter of Ashish Garg v. Assistant commissioner of State goods and services Tax [W.P.(C) 6652 of 2023 dated July 20, 2023] held that although Revenue department has discretion to cancel GST registration from a retrospective date but doing so without valid justification constitutes the arbitrary exercise of power.

Citation :
W.P.(C) 6652 of 2023 dated July 20, 2023

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Bimal Jain
Published in GST
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