GST Update

Desk of CA. Praveen Sharma – 874 Series (CAPS)

Delhi High Court in the case of Stalwart India Alloys Limited

The petitioner challenged the GST registration cancellation order dated 26.09.2025, which cancelled the registration retrospectively from 20.02.2024.

A show-cause notice dated 27.12.2024 alleged that the Anti-Evasion team found the premises closed during an inspection on 20.12.2024. The petitioner explained that the closure was due to a family bereavement.

The SCN fixed the personal hearing on 02.01.2025 even before the reply deadline. The petitioner filed a reply on 04.01.2025 requesting re-inspection, but it was not properly considered.

The main grievance was denial of natural justice, as no proper hearing or re-inspection was granted before cancellation.

The Department argued that the petitioner did not attend the hearing and was avoiding the Anti-Evasion inquiry, and the Court directed full cooperation with the investigation.

The Court held that retrospective cancellation is illegal when the SCN itself does not propose such cancellation, consistent with earlier Delhi High Court rulings.

The retrospective cancellation was quashed, and the Court directed fresh inspection, proper hearing, and a new order after considering the petitioner’s reply.

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