Deep Plastic Granules Trading Company vs. Union Of INDIA & Ors.
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The petitioner, Deep Plastic Granules Trading Company, filed a writ petition before the Delhi High Court challenging an order dated 14.06.2024 passed by the Adjudicating Authority. This order cancelled the petitioner's GST registration retrospectively from 26.02.2023. The petitioner argued that the show cause notice did not propose retrospective cancellation and that the material provided to establish their business operations was not considered. The petitioner stated they have ceased business and sought only that the cancellation not operate retrospectively. The Court noted that the petitioner has an equally efficacious remedy of appeal.
Held
The Court did not entertain the writ petition, finding that the petitioner has an equally efficacious remedy of appeal against the impugned order. The Court reasoned that it was apposite not to intervene in the writ jurisdiction under these circumstances. The Court clarified that if the petitioner files an appeal within two weeks from the date of the order, it would be considered on its merits, without being influenced by any delay in approaching the appellate authority. All rights and contentions of both parties were reserved. The Court did not decide the merits of the petitioner's arguments regarding the retrospective cancellation or the consideration of evidence. The petition was disposed of with directions to consider the appeal if filed within the stipulated time.
Key Issues
1. Whether the Adjudicating Authority erred in cancelling the petitioner's GST registration retrospectively from 26.02.2023, when the show cause notice did not propose such retrospective cancellation? (Question of law and fact, turning on principles of natural justice and relevant GST provisions regarding cancellation). 2. Whether the Adjudicating Authority failed to consider the material submitted by the petitioner to establish their business operations at the stated place of business? (Question of fact, turning on the evaluation of evidence). Petitioner's contentions: The show cause notice did not indicate any proposal to cancel the GST registration retrospectively. The petitioner provided sufficient material to demonstrate business activity, which was not considered. The petitioner has ceased business and seeks only that the cancellation not be retrospective. Revenue's contentions: Not recorded in the judgment.
Sections Cited
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Cause title — parties, addresses and appearances
O R D E R % 15.07.2024
The petitioner has filed the present petition, inter alia, impugning the order in original dated 14.06.2024 passed by the Adjudicating Authority (hereafter the impugned order) whereby the petitioner’s GST registration has been cancelled.
The learned counsel appearing for the petitioner submits that the GST registration was cancelled with retrospective effect from the date of the registration, that is, 26.02.2023. However, the show cause notice pursuant to which impugned order is passed did not disclose any such proposal to cancel the petitioner’s GST registration with retrospective effect. He also submitted that the petitioner had given sufficient material to establish that he was carrying on business at the stated place of business. However, the same was not considered. He submits that he has the instructions to state that since the petitioner has now ceased to carry on its business and the only relief that the petitioner seeks is that the cancellation of the petitioner’s GST 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 04/07/2025 at 00:49:55
registration may not operate retrospectively.
Concededly, the petitioner has an equally efficacious remedy of appeal against the impugned order.
In the circumstances, we consider it apposite not to entertain the present petition, while leaving it open for the petitioner to avail its appellate remedy. It is clarified that in case the petitioner files the appeal within two weeks from date, the same would be considered on merits, uninfluenced by any delay that may have been occasioned in approaching the appellate authority. All rights and contentions of parties are reserved.
The petition stands disposed of in the above terms. Pending application also stands disposed of. VIBHU BAKHRU, J SACHIN DATTA, J JULY 15, 2024 M Click here to check corrigendum, if any 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 04/07/2025 at 00:49:55
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.