Priyanshi Enterprises vs. Principal Commissioner Of CGST Delhi North And Ors.

Held

The Court disposed of the Writ Petition based on the statement made by the Respondent. The Respondent conceded that the order cancelling the Petitioner's GST registration should be considered prospective and not retrospective. The Respondent agreed that the effective date of cancellation should be May 7, 2022, which was the date of the Show Cause Notice, instead of the originally stated August 2, 2020. In light of this concession by the Respondent, the Court found no further orders were required. The ratio decidendi is that a retrospective cancellation of GST registration can be modified to a prospective one if the revenue authority concedes to such a change, especially when it aligns with the date of the Show Cause Notice. The operative direction was to dispose of the writ petition in terms of the Respondent's submission.

Facts

The Petitioner, Priyanshi Enterprises, filed a Writ Petition challenging an order that retrospectively cancelled its GST registration. The cancellation was made effective from August 2, 2020, by an order dated June 2, 2022. The Respondent, Principal Commissioner of CGST Delhi North and others, through their counsel, stated they had no objection if the cancellation order was considered prospective. Specifically, the Respondent agreed that the cancellation of GST registration should be effective from May 7, 2022, which is the date of the Show Cause Notice. No further arguments or submissions were made by either party regarding the retrospective nature of the cancellation.

Key Issues

1. Whether the cancellation of GST registration, which was made effective retrospectively from August 2, 2020, by an order dated June 2, 2022, is legally sustainable? The Petitioner contended that the retrospective cancellation was arbitrary and illegal. The Respondent, however, conceded to the Petitioner's grievance regarding the retrospective effect. The Respondent argued that the order cancelling GST registration should be effective prospectively from the date of the Show Cause Notice, i.e., May 7, 2022, and not retrospectively from August 2, 2020. The Respondent indicated no objection to this modification.