Order Date – 05 September 2023

Parties: Geetanjli Trade Fincap Pvt Ltd Vs Commissioner of Delhi Goods and Services Tax And Anr.

Facts –

• The Petitioner, Geetanjli Trade Fincap Pvt Ltd, had filed an application dated 04.01.2020 seeking cancellation of its GST registration w.e.f 31.12.2019 on the ground that the petitioner had closed its business.
• The respondents on 27.07.2020 seeks clarification from the petitioner as per Rule 9(2) of the Act and the petitioner responded to the notice even though it was beyond the period of six months from the date of application. Consequently, the proper officer rejected the application for cancellation of its GST registration by an order dated 27.11.2020.
• As the petitioner has closed down his business, he had not filed any returns, so a show cause notice was issued on 05.03.2021 and the proper officer cancelled the registration with retrospective effect vide order dated 15.03.2021.

Issue –

• Whether the cancellation of registration with retrospective effect is valid?

Order –

• The Divisional Bench of Hon’ble High Court observed that the order of cancellation dated 15.03.2021 does not indicate any reason for cancelling the petitioner’s GST registration with retrospective effect, that is, w.e.f. 01.07.2017. The said order also contains a Tabular Statement which indicates that no tax was due from the petitioner.
• Further, the impugned order dated 15.03.2021 provides no reasons for cancellation of petitioner’s GST registration with retrospective effect. The only allegation against the petitioner was not filing returns for a period of six months is no plausible reason to cancel its GST registration with retrospective effect, that is, from 01.07.2017.
• Hence the impugned order is set aside and as the petitioner had discontinued its business w.e.f. 31.12.2019, directed that the petitioner’s cancellation of GST registration shall take effect from 31.12.2019.