M/S Atr Traders PVT. LTD. vs. Principal Commissioner Of Department Of Trade And Taxes, Government Of Nct Of Delhi
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Cause title — parties, addresses and appearances
O R D E R %
2026
Through the present Writ Petition, the Petitioner prays for issuance of an appropriate writ quashing the Order dated 09.07.2026, whereby its Goods and Services (‘GST’) Registration came to be cancelled as well as the Show Cause Notice (‘SCN’) dated 13.06.2026 issued under Rule 22(1) of the Central Goods and Services Tax Rules, 2017 (to be read as Rules of 2017).
A perusal of the record reflects that the GST Registration of the Petitioner was cancelled on account of the fact that, despite reporting a high gross turnover, it has failed to discharge the requisite tax liability in cash as mandated under Rule 86(B) of the Rules of 2017. 3. Learned counsel representing the Respondent submits that the Petitioner-firm obtained its GST Registration in the month of January, 2026 and declared a turnover of Rs.14,14 crores during the period from January 2026 to March 2026, and a further turnover of Rs.23.80 crores from April 2026 to June 2026. Learned counsel further submits that the Petitioner has been availing fake Input Tax Credit (‘ITC’) This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 15:36:38
from fake firms with a view to legitimising such ineligible credit.
Learned counsel representing the Petitioner, submits that the Petitioner is willing to deposit the balance tax liability in cash, thereby seeking an opportunity to have the cancellation of its GST Registration revoked.
As per Section 30 of the Central Goods and Services Tax Act, 2017, the Petitioner has a statutory remedy of filing an application seeking revocation of cancellation of its GST Registration. In view of the availability of the said remedy, this Court is not inclined to entertain the present Petition on merits.
Keeping in view the aforesaid position, the Petitioner, if so advised, may file an application for revocation of cancellation of its GST Registration. In the event such application is filed, the Competent Authority shall consider and decide the same expeditiously, within a period of 10 days, after affording the Petitioner an opportunity of being heard, and shall pass appropriate order(s) in accordance with law.
It is also clarified that, if the Petitioner deposits its entire outstanding tax liability, the Competent Authority will take a pragmatic view.
With these observations, the present Petition is disposed of. The pending application also stands closed.
ANIL KSHETARPAL, J.
SHAIL JAIN, J. JULY 27, 2026 jai/hr
This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 30/07/2026 at 15:36:38
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.