In the matter of M/S Balaji Industries (Vipin Kumar) vs. The Principal Commissioner CGST Delhi North Commissionerate & Anr., the petitioner challenged the retrospective cancellation of its GST registration by the tax authorities. The impugned order dated 10.06.2022 had cancelled the petitioner’s GST registration with effect from 11.09.2017, citing non-compliance with specified provisions of the Central Goods and Services Tax Act, 2017 (CGST Act) and related rules.

The petitioner contended that it had ceased operations in March 2022 and had requested its Chartered Accountant to file an application for cancellation of its GST registration. However, due to a breakdown in communication, the petitioner did not respond to the Show Cause Notice nor attend personal hearings, leading to the cancellation of registration.

Upon review, the Delhi High Court observed that the GST authorities had failed to afford the petitioner proper opportunity to be heard on the specific grounds cited in the impugned order. Additionally, the retrospective effect of cancellation was not justified, as the petitioner’s registration had been suspended on 24.05.2022, and there was no valid basis to extend this cancellation back to 2017.

Accordingly, the Court modified the impugned order, directing that the petitioner’s GST registration be treated as cancelled with effect from 24.05.2022, the date of suspension, rather than from 11.09.2017.
The Court clarified that this modification does not preclude the tax authorities from initiating proceedings for any statutory violations or recovering any due amounts in accordance with law.

Source Link - https://www.mytaxexpert.co.in/uploads/1768213366_MSBalajiIndustriesVipinKumarvs.PrincipalCommissionerCGSTDelhiNorthW.P.C119132024.pdf

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