Top Stories Delhi HC directs to cancel GST Registration of Copper Business from date of Submission of Application [Read Order] The Delhi High Court has ruled to cancel the copper business’s Goods and Services Registration, effective from the date of application submission By Aparna. M – On March 6, 2024 3:29 pm – 2 mins read The Delhi High Court recently decided to cancel Goods and Service Registration of copper business on which the date of application was submitted. The Fact of the case is that the petitioner Laxmi Jain was engaged in the wholesale business of trading and manufacturing of copper and possessed GST registration. Petitioner submitted an application seeking Cancellation of Registration Certificate on 16.05.2019. Accordingly the respondent issued notice seeking additional information and documents relating to application for cancellation of registration.

Thereafter the application of the petitioner seeking cancellation was rejected. However, in the said order no reason was mentioned. After then, the Petitioner received a Show Cause Notice dated requesting that its registration be canceled. Nevertheless, the petitioner is not informed by the Show Cause Notice that the registration may be canceled retroactively. Aggrieved by the order the petitioner filed writ petition before the court. During the proceedings,counsel for the petitioner submitted  that business was managed by the husband of the Petitioner, who expired on 25.02.2019 due to serious ailments.

Due to the death of her husband, petitioner could not continue business and applied for cancellation of GST registration and was unable to file returns from April 2019 onwards. Further, neither the show cause notice, nor the order spell out the reasons for retrospective cancellation According to the Counsel for respondent  one of the consequences for cancelling a tax payer’s registration with retrospective effect is that the taxpayer’s customers are denied the input tax credit availed in respect of the supplies made by the taxpayer during such period. It was observed by the court that a taxpayer’s registration can be canceled with retrospective effect only where such consequences are intended and are warranted.

Hence the bench observed that Petitioner does not seek to carry on business or continue the registration, the impugned order dated 26.09.2020 is modified to the limited extent that registration shall now be treated as canceled with effect from 16.05.2018 i.e., the date when the application of cancellation of GST registration was submitted. Petitioner shall comply with the requirements of Section 29 of the Central Goods and Services Tax Act, 2017. Therefore the division bench of Justice Sanjeev Sachdeva and Justice Ravinder Dudeja, canceled Goods and Service Registration of copper business on which the date of application was submitted. Mr. Sumit K. Batra, Mr. Manish Khurana and Ms. Priyanka Jindal, advocates Who appeared for the petitioner. Mr. Rajeev Aggarwal, Advocate who appeared for the revenue.