M/S Natraj Steels Through Its Prop. Ravinder Kumar Aggarwal vs. Sales Tax Officer, Class Ii/Avato, Ward-66, Department Of Trade And Taxes I.P Estate, New Delhi-110
Original PDF →Facts
The Petitioner, M/s Natraj Steels, challenged the retrospective cancellation of its GST registration (07AACPA3495P1ZF) dated October 28, 2021, which was made effective from July 1, 2017. The Petitioner had another GST registration (07AACPA3495P2ZE) for M/s Natraj Industry. Due to business closure under the first GSTIN, the Petitioner's accountant failed to file proper returns, leading to the cancellation. The Petitioner was unaware of the retrospective nature until 2024 and filed an appeal before the Appellate Authority on April 25, 2024, which was rejected as time-barred. The present writ petition was filed challenging the order and the rejection of the appeal.
Held
The Court ordered that the cancellation of the GST registration shall be effective from September 4, 2021, the date of the Show Cause Notice, instead of the original retrospective date of July 1, 2017. The Court directed that this change be reflected on the GST portal. Furthermore, if the portal needed to be opened for the filing of returns and other necessary documents, it should be done within ten days. The Petitioner was also directed to withdraw the appeal filed against the impugned order dated October 28, 2021, within two weeks. The writ petition was disposed of in terms of these directions.
Key Issues
1. Whether the retrospective cancellation of GST registration effective from July 1, 2017, is valid, considering the Petitioner's subsequent business operations under a different GSTIN? The Petitioner argued that the retrospective cancellation was not justified, especially since they were unaware of the exact date of cancellation and its retrospective effect. They had a subsequent GST registration and were operating under that. The Petitioner also highlighted that their appeal to the Appellate Authority was rejected solely on the grounds of limitation. The Respondent (Sales Tax Officer) submitted that the cancellation should be given effect from the date of the Show Cause Notice, which was September 4, 2021.
Sections Cited
Article 226
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R % 15.05.2025
This hearing has been done through hybrid mode.
The present petition has been filed by the Petitioner- M/s Natraj Steels through its Proprietor Ravinder Kumar Aggarwal under Article 226 of the Constitution of India, inter alia, challenging the retrospective cancellation of the Goods and Service Tax (hereinafter, ‘GST’) registration bearing no. 07AACPA3495P1ZF vide impugned order bearing reference no. ZA071021236643Y dated 28th October, 2021 (hereinafter, ‘impugned order’). Vide the impugned order, the GST registration of the Petitioner has been retrospectively cancelled w.e.f. 01st July, 2017. 3. The case of the Petitioner is that earlier he had started a firm by the name M/s Natraj Steels and had a GST registration bearing number 07AACPA3495P1ZF. Thereafter, it is stated that the Petitioner decided to 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 01/07/2025 at 22:34:08
change the name to M/s Natraj Industry and was granted registration vide GST number 07AACPA3495P2ZE.
Due to closure of business under GSTIN 07AACPA3495P1ZF, the Petitioner’s accountant had failed to file the proper returns due to which the cancellation of the GST registration took place but the Petitioner was not aware that it was cancelled retrospectively. The Petitioner came to know of the same in 2024 and had preferred an appeal before the Appellate Authority on 25th April 2024 vide ARN No: AD0700424057537W. However, the same has not been decided as the same was beyond the period of limitation. Hence, the present petition.
Ld. Counsel for the Respondent after seeking instructions, submits that the cancellation be given effect to from the date of Show Cause Notice, i.e. 04th September, 2021. 6. Ordered accordingly. The cancellation of GST registration shall be w.e.f. 4th September 2021. Let the change be effected even in the GST portal. If the portal needs to be opened for the sake of filing of returns and any other documents, the same shall be opened within a period of ten days.
The Petitioner shall also withdraw the appeal filed against the impugned order dated 28th October, 2021 within two weeks.
Accordingly, the present writ petition is disposed of in above terms. All the pending applications, if any, are also disposed of. PRATHIBA M. SINGH, J. RAJNEESH KUMAR GUPTA, J. MAY 15, 2025/MR/ck 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 01/07/2025 at 22:34:08
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.