GST Registration Cancellation with Retrospective Effect Invalid if Prior Cancellation Request Filed by Assessee: Delhi HC

The Delhi High Court has delivered a significant judgment protecting taxpayers from potential double jeopardy by ruling that Goods and Services Tax (GST) registration cannot be cancelled retrospectively in cases where the assessee has already submitted a formal request for cancellation. The court emphasized the fundamental principle of natural justice in administrative actions, stating that retrospective cancellation should only be invoked in instances of deliberate fraud or willful misconduct. This ruling ensures that genuine taxpayers who have initiated the cancellation process are not unfairly penalized for periods after their cancellation request was filed, providing a crucial safeguard against unwarranted tax liabilities.