Introduction
A recent case where a petitioner challenged the retrospective cancellation of their Goods and Services Tax (GST) registration. The case highlights the importance of due process and the right to be heard in administrative proceedings.
Case Overview
The petitioner had their GST registration, cancelled with retrospective effect from 26.10.2017. The cancellation was based on the failure to file returns for a continuous period of six months. However, the impugned order did not provide any specific reasons for the retrospective cancellation.
Key Points and Analysis
Lack of Due Process: The impugned SCN did not explicitly propose retrospective cancellation. While it mentioned the possibility of an ex-parte decision if the petitioner failed to appear for a hearing, no specific date or time was provided. This omission led to the petitioner's contention that they were not given a proper opportunity to address the retrospective cancellation.
Petitioner's Consent: Interestingly, the petitioner expressed no objection to the cancellation itself but contested the retrospective aspect. They argued that there was no justification for canceling the registration for periods when returns were filed.
Respondent's Argument: The respondent contended that the Proper Officer had the authority to cancel the registration with any date deemed fit under Section 29 (2) of the Central Goods and Services Tax Act, 2017. They suggested remanding the matter to the Proper Officer for reconsideration after hearing the petitioner.
Court's Decision: Considering the petitioner's delay in approaching the court and the respondent's argument, the court found merit in remanding the matter to the Proper Officer. The court directed the Proper Officer to consider the petitioner's reply to the SCN and take an informed decision after providing a hearing.
GST Case Law Shobha Rani Versus Commissioner of Delhi Goods and Services Tax
CItation-2024 TAXONATION 1734 (DELHI)
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