Retrospective Cancellation of GST Registration: Delhi HC limits Cancellation from date of Issuance of SCN

The Delhi High Court, in a case involving M/s Shri Bankey Bihari Trading, addressed issues related to the retrospective cancellation of Goods and Services Tax (GST) registration. The petitioner received a Show Cause Notice (SCN) for cancellation without proper reasons or a scheduled hearing date. The subsequent order, issued without clarifying reasons and erroneously citing a retrospective cancellation from July 2017, was challenged. The court found the order contradictory and lacking procedural fairness, noting that retrospective cancellations require objective justification, especially if the taxpayer was compliant during the period in question. It revised the order to cancel the registration from the date of the SCN, emphasizing compliance with Section 29 of the CGST Act, 2017. The decision underscores the importance of due process and proper justification in tax-related administrative actions, impacting GST compliance and procedural fairness in tax matters.