Delhi HC Restores GST Registration for Non-Compliance with Section 39 of CGST Act and Failure to File Returns

The Delhi High Court has restored the GST registration of a taxpayer whose registration was cancelled due to non-compliance with Section 39 of the CGST Act, specifically for failing to file returns. The Court ruled that the cancellation order lacked proper reasoning and did not adhere to the principles of natural justice. It emphasized that retrospective cancellation of GST registration is not justified solely based on non-filing of returns, especially when the taxpayer had complied previously. The Court highlighted the necessity for proper officers to independently assess and provide clear grounds for such actions, ensuring the affected party has the opportunity to respond.