The Delhi Court observed that if the SCN does not consider the retrospective cancellation of GST Registration, the registration cannot be cancelled with retrospective effect.
Nidhi | Oct 11, 2025 |
Delhi High Court Sets Aside Retrospective GST Cancellation Order
The petitioner, Namdhari Timber Pvt. Ltd., filed a petition before the Delhi High Court challenging the retrospective cancellation of the GST registration of the Petitioner from July 1, 2017, in the impugned order dated March 5, 2025.
As per the petitioner, they have no problem if their registration cancellation is applicable from the date when the show cause notice dated November 28, 2024, was issued.
The GST department, on the other hand, said that the petitioner did not submit any response against the show cause notice (SCN) dated October 3, 2023. This was sent by the GST department after the petitioner filed an application regarding the change of its principal place of business. The Department rejected this application, saying that the petitioner did not submit any documents.
An inspection was done at the petitioner’s principal place of business, and it was found that the company was not present at its registered address. Due to this, another SCN was sent in November 2024 for the cancellation of GST registration. Since the company did not reply or appear for the hearing, the registration was cancelled retrospectively from July 1, 2017.
The Delhi Court observed that if the SCN does not consider the retrospective cancellation of GST Registration, the registration cannot be cancelled with retrospective effect. The court cited supporting decisions delivered in various cases, including ‘Subhana Fashion v. Commissioner Delhi Goods and Service Tax (W.P. (C) 12255/2024)’, ‘M/S Balaji Industries v. The Principal Commissioner CGST Delhi North Commissionerate & Anr. (W.P.(C) 11913/2024)’ and ‘Ridhi Sidhi Enterprises v. Commissioner of Goods & Service Tax (CGST), South Delhi & Anr. (W.P.(C) 8061/2024)‘.
The Court also noted that the company’s premises were de-sealed on 16th April 2024, which shows the company was existing at that place of business.
Therefore, the court held that the cancellation from 1st July 2017 is not valid and accordingly, it set aside the impugned cancellation order. The High Court directed the GST department to proceed in accordance with the law.
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