National Die Maker vs. Commissioner Of Dgst Delhi & Ors.
Original PDF →Facts
The petitioner, National Die Maker, filed a writ petition before the Delhi High Court challenging an order dated 08.02.2023 that rejected its appeal against an order dated 31.10.2021. The latter order had cancelled the petitioner's GST registration (GSTIN 07AEHPA0518G1Z3). The petitioner contended that while it had filed returns previously, it failed to file returns for a certain period due to nil turnover. A Show Cause Notice dated 01.07.2021 was issued for non-filing of returns for six continuous months, leading to the suspension of registration. The petitioner claimed it could not respond to the notice or appear due to illness, exacerbated by the prevailing pandemic. Consequently, the registration was cancelled. The appeal against this cancellation was rejected solely on the grounds of being time-barred.
Held
The Court held that in numerous similar cases, it has directed the restoration of GST registration to permit taxpayers to file pending returns, while reserving the right of the revenue to cancel registration if the default is not cured within a specified period. The Court acknowledged the petitioner's submission that it was unwell and unable to respond to the Show Cause Notice, noting the difficulties faced by many during the pandemic. Therefore, the Court directed the respondents to restore the petitioner's GST registration to enable it to file all pending returns and pay any applicable taxes, interest, and penalties. The Court clarified that if the petitioner fails to regularize its accounts within four weeks from the date of the order, the respondents are at liberty to immediately cancel the registration. It was also clarified that this order would not preclude the respondents from taking any other lawful action.
Key Issues
1. Whether the cancellation of the petitioner's GST registration was justified on the grounds of non-filing of returns for a continuous period of six months, considering the petitioner's claim of illness and the prevailing pandemic conditions. 2. Whether the rejection of the petitioner's appeal solely on the ground of limitation was appropriate, given the circumstances preventing the petitioner from responding to the Show Cause Notice. Petitioner's arguments: The petitioner argued that its failure to file returns was due to illness and the pandemic, and that it had nil turnover for the period in question. It also contended that its appeal was rejected on technical grounds of limitation, overlooking the substantive reasons for its non-compliance. The petitioner relied on previous High Court judgments where registration was restored to allow taxpayers to file pending returns. Revenue's arguments: The judgment records that learned counsel for the respondent accepted notice. No specific arguments for the revenue were recorded in the provided text.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R %
2023
Issue notice.
Learned counsel for the respondent accepts notice.
The petitioner has filed the present petition impugning an order dated 08.02.2023, whereby, the petitioner’s appeal against an order dated 31.10.2021 cancelling its GST registration (GSTIN 07AEHPA0518G1Z3), was rejected.
The petitioner also impugns the said cancellation order dated 31.10.2021. 5. It is the petitioner’s case that he had been carrying on the business and had been filing his due returns from the date of the registration, however, had not filed the returns for certain period as its turnover for the said period was nill.
The respondent had issued the Show Cause Notice dated 01.07.2021 calling upon the petitioner to show cause as to why its registration not be cancelled on the ground that the petitioner 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 09/06/2026 at 18:05:23 had not filed the returns for the continuous period of six months. The petitioner’s GST registration was also suspended w.e.f. the said date (that is, 01.07.2021).
The petitioner claims that it had failed to respond to the said Show Cause Notice or appear before the concerned authorities as he was unwell.
The petitioner had failed to respond to the Show Cause Notice and the concerned Officer issued an order dated 31.10.2021 cancelling the petitioner’s registration. The said order also indicates that tax and penalty interest was determined as nill.
The petitioner’s appeal against the said order was determined solely on the ground that it has been beyond the period of limitation.
In a number of such case, this Court has held that the registration be restored to permit the taxpayer to file the returns while reserving the right of the respondents to cancel the registration if the petitioner does not cure the cause within a specified period.
It is the petitioner’s case that it had been unable to respond to the Show Cause Notice as he had been unwell. It is also noticed that the during the material time, the pandemic was raging and a number of persons were facing such difficulty.
In view of the above, we direct the respondents to restore the registration to enable the petitioner to file all returns and pay taxes, interest and penalties, if any, in accordance with law.
It is clarified that if the petitioner fails to regularise the account within a period of four weeks from today, the respondents would be at liberty to immediately cancel the registration.
It is also clarified that this order would not preclude 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 09/06/2026 at 18:05:23 respondents from taking such other action as warranted in accordance with law.
The petition is disposed of in the aforesaid terms. VIBHU BAKHRU, J AMIT MAHAJAN, J FEBRUARY 24, 2023 ‘KDK’ 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 09/06/2026 at 18:05:23
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.