Mrj Trading Through Its Proprietor Sambhav Jain vs. The Commissioner, CGST, Delhi West Commissionerate
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The Petitioner, MRJ Trading, through its proprietor Sambhav Jain, filed a writ petition challenging an order dated June 25, 2025, which cancelled its GST Registration No. 07BAGPJ6722B1Z2 effective from October 1, 2024. The cancellation was based on a Show Cause Notice alleging failure to file returns for six continuous months. The Petitioner had previously applied for cancellation of its GST registration, which was rejected on March 11, 2025. The Petitioner stated that the business had closed, pending returns were filed on August 3, 2026, and it no longer wished to continue the registration. The Respondent, Commissioner, CGST, Delhi West, confirmed there were no allegations of wrongdoing against the Petitioner.
Held
The Court held that the cancellation of the Petitioner's GST Registration with retrospective effect was not permissible. The reasoning was that the Show Cause Notice issued to the Petitioner did not indicate any intention on the part of the Department to cancel the registration with retrospective effect. In the absence of such an indication, the retrospective cancellation could not have been ordered. The Court relied on the judgment in *Smart World Communications vs. Commissioner of Central Tax and CGST, Delhi North*. The Court set aside the order cancelling the Petitioner's GST Registration with retrospective effect. However, the cancellation of the GST Registration was directed to continue to operate prospectively. The Petitioner was granted relief by setting aside the retrospective cancellation.
Key Issues
1. Whether the cancellation of GST registration with retrospective effect was permissible in the absence of any indication of such intention in the Show Cause Notice, turning on the principles of natural justice and procedural fairness. Petitioner's Contentions: The Petitioner argued that the Show Cause Notice did not indicate any intention to cancel the GST registration retrospectively. Therefore, the retrospective cancellation was illegal and unsustainable. The Petitioner relied on the judgment in *Smart World Communications vs. Commissioner of Central Tax and CGST, Delhi North*. The Petitioner also submitted that the business had closed, pending returns were filed, and they no longer wished to continue the registration. Respondent's Contentions: The Respondent, upon verification, submitted that there were no allegations of wrongdoing against the Petitioner. The Respondent did not contest the Petitioner's submission regarding the lack of retrospective intention in the Show Cause Notice.
Sections Cited
Section 122
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Cause title — parties, addresses and appearances
O R D E R % 29.09.2026
The Petitioner prays for quashing of the order dated 25.06.2025, whereby his GST Registration No. 07BAGPJ6722B1Z2 was cancelled with effect from 01.10.2024. 2. The Petitioner was served with a Show Cause Notice alleging that he had failed to file returns for a continuous period of six (06) months.
The Petitioner had also applied for cancellation of his GST Registration, which application was rejected on 11.03.2025. 4. Learned counsel representing the Petitioner submits that the Petitioner has already closed his business and is no longer interested in continuing with his GST Registration. It is further submitted that the Petitioner has filed his pending returns on 03.08.2026. 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 01/10/2026 at 12:03:06
Learned counsel representing the Respondent, upon verification of the facts, submits that, as of now, there is no allegation of any wrongdoing on the part of the Petitioner.
The Show Cause Notice issued to the Petitioner did not indicate any intention on the part of the Department to cancel his GST Registration with retrospective effect. In the absence of any such intention having been indicated in the Show Cause Notice, the cancellation of the GST Registration with retrospective effect could not have been ordered.
Learned counsel representing the Petitioner also relies upon the judgment passed by the Division Bench of this Court in W.P.(C) 13747/2025, titled Smart World Communications vs. Commissioner of Central Tax and CGST, Delhi North1. 8. Keeping in view the aforesaid position, the order cancelling the Petitioner’s GST Registration with retrospective effect is set aside. However, the cancellation of the GST Registration shall continue to operate prospectively. ANIL KSHETARPAL, J. BHARAT PARASHAR, J. SEPTEMBER 29, 2026 s.godara/pal 1 (2025) 34 Centax 427 (Del.) 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 01/10/2026 at 12:03:06
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.