M/s MAURYA INDUSTRIES v. THE UNION OF INDIA & ANR
High Court, Delhi
Sanjeev Sachdeva, Justice & Ravinder Dudeja, Justice
M/s MAURYA INDUSTRIES
v.
THE UNION OF INDIA & ANR
W.P.(C) 10155/2023 dated 11.03.2024
Law : GST
Act Name : Central Goods & Services Tax Act, 2017
Relevant Section : Section 29
Decision : In favour of assessee
Cancellation of Registration application – In this case, petitioner has submitted an application on 12.04.2023, seeking cancellation of its registration on the ground that business was discontinued as firm was incurring losses. Petition impugns SCN dated 06.06.2023 and also impugns order dated 15.06.2023 whereby GST registration of the Petitioner was cancelled w.e.f 26.10.2022. – The application seeking cancellation was rejected by Anti Evasion Branch on ground that taxpayer was found non existent at the principal place of business. Thereafter the SCN issued mentioned “Section 29 (2) (e) registration obtained by means of fraud, willful misstatement, and suppression of facts”. – Petition submits that clearly order for cancellation on the ground that petitioner was found non-existent on 30.05.2023 ex-facie is not sustainable for the reason that on 12.04.2023, petitioner had himself applied for cancellation of registration on the ground of closure of business. It is but obvious that on 30.05.2023, when an inspection was carried out, petitioner was not found available at the subject premises. – Held- The Court after looking into the facts of this case noted that neither the Show Cause Notice dated 06.06.2023, nor the impugned order give any reasons. Also according to Section 29(2) of the Act, 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. Registration cannot be cancelled with retrospective effect mechanically. In view of the above, the impugned order dated 15.06.2023 and the Show Cause Notice dated 06.06.2023 are modified to the extent that the registration of the petitioner shall now be deemed cancelled with effect from 12.04.2023 i.e., when the petitioner applied for cancellation of registration.
Represented By:
Counsel for the Petitioner: N.K. Sharma & Kapil Gautam, Advocates.
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