M/s MK TRADERS v. SALES TAX OFFICER

📅 June 8, 2026 👤 Team Batuk Consultancy 📂 GST, GST Case Laws

High Court, Delhi

Sanjeev Sachdeva, Justice & Ravinder Dudeja, Justice

M/s MK TRADERS

SALES TAX OFFICER

W.P.(C) 2568/2024 & CM APPL. 10575/2024 & CM APPL. 10576/2024 dated 21.02.2024

Law : GST

Act Name : Central Goods & Services Tax Act, 2017

Relevant Section : Section 29 & 73

Decision : In favour of assessee

Cancellation of GST registration with retrospective effect – no opportunity to object the retrospective cancellation of the registration – violation of principles of natural justice – The Petitioner Challenges the impugns order whereby the GST registration of the Petitioner was cancelled retrospectively. Petitioner had submitted an application seeking cancellation of GST registration, pursuant there to a SCN was issued and thereafter the GST registration of the Petitioner was cancelled by order dated 25.08.2021 – Held That – The GST registration of the Petitioner was cancelled by order dated 25.08.2021, however, the said order does not give any reasons for cancellation of the registration. It merely states that the registration is liable to be cancelled for the following reason “whereas no reply to notice to show cause has been submitted”. Neither the SCN nor the order spell out the reasons for cancellation. In fact, order dated 29.01.2021 does not qualify as an order of cancellation of registration. On one hand, it states that the registration is liable to be cancelled and on the other, in the column at the bottom there are no dues stated to be due against the petitioner and the table shows nil demand. In terms of Section 29(2) of the CGST Act, 2017, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. The registration cannot be cancelled with retrospective effect mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. It is important to note that, according to the respondent, one of the consequences for cancelling a taxpayer’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 tax payer during such period.

Represented By:

Counsel for the Petitioner: R.P. Singh & Priyank Goel, Advocates

M/s MK TRADERS v. SALES TAX OFFICER

M/s MK TRADERS v. SALES TAX OFFICER

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