GST Update

Desk of CA. Praveen Sharma – 825 Series (CAPS)

DELHI HIGH COURT IN THE CASE OF E World Business Solutions Private Limited

1- The petitioner challenged cancellation of GST registration (18.03.2025) made retrospective from 01.07.2017 despite later filing pending returns.

2- The SCN (31.12.2024) cited non-filing of returns, but petitioner complied by filing on 15.01.2025 with dues & late fee. 

3- Instead of dropping proceedings under Rule 22(4) CGST Rules, authorities cancelled the registration citing non-existence on premises.

4- Court noted this ground was never in SCN; retrospective cancellation exceeded the scope of notice. 

5  -  Delhi HC precedents like Subhana Fashion, Balaji Industries, Riddhi Siddhi Enterprises emphasized retrospective cancellation cannot be mechanical, needs clear reasons.

6 - Court set aside cancellation order & alert notice (27.05.2025), holding order legally unsustainable. 

7- Registration to stand cancelled only from SCN date – 31.12.2024, not retrospectively; department free to act for future violations. 

Link::https://www.linkedin.com/pulse/desk-ca-praveen-sharma-825-series-caps-corporate-trainer--ds4sc

Regards
CAPS