TaxTMI 
TaxTMI 
2025 (6) TMI 258
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..... Mr. Aashneet Singh, APP for the State. Insp. Neeraj Kumar, PS Shahdra, M-8010126421. PRATHIBA M. SINGH, J. (ORAL) 1. This hearing has been done through hybrid mode. 2. The present four petitions have been filed by the Petitioners under Article 226 of the Constitution of India, inter alia, assailing the following Show Cause Notices (hereinafter, 'SCNs') and orders for cancellation of GST registration: (i) W.P. (C) 685/2025- Show Cause Notice dated 7th November, 2024 issued by Keshari Nandan Shrivastwa, Superintendent, Range-137, CGST, East Delhi, as also the consequent order for cancellation of GST registration dated 23rd November 2024. (ii) W.P. (C) 1314/2025- Show Cause Notice dated 16th October, 2024 issued by Ajay Kumar, Superintendent, Range-136, CGST, East Delhi, as also the consequent order for cancellation of GST registration dated 29th October 2024. (iii) W.P. (C) 2461/2025- Show Cause Notice dated 27th September, 2024 issued by Ajay Kumar, Superintendent, Range-136, CGST, East Delhi, as also the consequent order for cancellation of GST registration dated 22nd October 2024. (iv) W.P. (C) 2867/2025- Show Cause Notice dated 6th F....
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....which would ensue and accompany a retroactive cancellation makes it all the more vital that the order be reasoned and demonstrative of due application of mind. It is also necessary to observe that the mere existence of such a power would not in itself be sufficient to sustain its invocation. What we seek to emphasise is that the power to cancel retrospectively can neither be robotic nor routinely applied unless circumstances so warrant. When tested on the aforesaid precepts it becomes ex facie evident that the impugned order of cancellation cannot be sustained. 6. We note that while dealing with the right of the respondents to cancel GST registration with retrospective effect and the manner in which such power should be exercised in accordance with the statutory scheme was an issue which was noticed in Ramesh Chander vs Assistant Commissioner of Goods and Services Tax, Dwarka Division, CGST Delhi & Anr. The Court in Ramesh Chander taking note of the contours of Section 29 had held:- "1. The petitioner impugns order in appeal dated 29.12.2023, whereby the appeal filed by the petitioner has been dismissed solely on the ground of limitation. Petitioner had filed the ....
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....te. 6. Neither the show cause notice, nor the order spell out the reasons for retrospective cancellation. In fact, in our view, order dated 13.07.2022 does not qualify as an order of cancellation of registration. 7. As per the petitioner, the said order reflected that the GST of the Petitioner stands cancelled from 0 1.07.2017 even though returns thereafter have been filed by the Petitioner. 8. We notice that the show cause notice as well as the impugned order of cancellation. are themselves vitiated on account of lack of reason and clarity. The appeal has been dismissed solely on the ground of limitation. Since the very foundation of entire proceedings i.e. show cause notice and the order of cancellation are vitiated. we are of the view that no purpose would be served in relegating the petitioner to the stage of an appeal. 9. In terms of Section 29 (2) of the Central Goods and Services Tax Act, 2017, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. The registration cannot be cancelled with retrospe....
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.... accordance with law, if it is found that the petitioner had violated any provisions of the Act. 15. Petition is disposed of in the above terms." 7. We further take note of the judgment in Delhi Polymers vs Commissioner, Trade and Taxes & Anr. wherein the following was observed:- "1. Petitioner has filed the appeal impugning order of cancellation of registration dated 15.12.2021 whereby the OST registration of the Petitioner has been cancelled retrospectively with effect from 01.07.2017. Petitioner also impugns Show Cause Notice dated 04.09.2021. 2. Vide Show Cause Notice dated 04.09.2021, petitioner was called upon to show cause as to why the registration be not cancelled for the following reason:- "Collects any amount representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due" 3. Petitioner was engaged in the business of Sanitary ware Products & Accessories i.e., Baths, Shower, Washbasins, Seats and Cover etc. and possessed OST registration. 4. Show Cause Notice dated 04.09.2021 was issued to the Petition....
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.... be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant. 10. It is important to note that. according to the respondent. one of the consequences for cancelling a tax payer's registration with retrospective effect is that the taxpayer's customers are denied the input tax credit availed in respect of the supplies made by the tax payer during such period. Although. we do not consider it apposite to examine this aspect but assuming that the respondent's contention in required to consider this aspect while passing any order for cancellation of GST registration with retrospective effect. Thus. a taxpayer's registration can be cancelled with retrospective effect only where such consequences are intended and are warranted. 11. It may be further noted that both the Petitioners and the department want cancellation of the GST registration of the Petitioner, though for a different reason. 12. In view of the fact that Petitioner does not seek to carry on business or continue the registration, the impugned order dated 15.12.2021 is modified to the limited extent that registration shall now....
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....ell, Mr. Pranay Jain is the counsel for the respective Petitioners. The details of the said petitions are reproduced herein below: i. W.P.(C) 1314/2025 titled M/s Trix India Sales Corporation v. Principal Commissioner of Goods and Service Tax East Delhi; ii. W.P.(C) 685/2025 titled S R Enterprises v. Pr. Commissioner of Goods and Service Tax, East Delhi; iii. W.P.(C) 2867/2025 titled M/s Compact Enterprises v. Principal Commissioner of Goods and Service Tax East Delhi. xxxx 12. Under these circumstances, the following directions are issued: i. The final order dated 27th February, 2025 passed by the Court in this writ petition shall stands recalled and any order giving effect to the said order of this Court shall also not be given effect to. ii. The proprietor of the Petitioner Concern, Mr. Sahib Alam shall remain present in Court on the next date of hearing. iii. The Registry shall list all the three writ petitions mentioned above, along with the present writ petition, before this Court on the next date. iv. Intimation shall be given by Mr. Jain, ld. Counsel to the Petitioners in those three c....
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....re issued for production of the Petitioner- Mr. Sahib Alam who has deposed the affidavit dated 24th February, 2025 in the subject petition filed before the Court. iii. The non-bailable warrant shall be executed by the SHO of the concerned area. iv. The non-bailable warrant shall be executed through Mr. Sanjay Lao, ld. Standing Counsel (Criminal) for the Government of NCT of Delhi. v. The Petitioner shall be produced before the Court on the next date of hearing." Relevant order of W.P.(C) 2867/2025 "11. Under these circumstances, the following directions are issued: i. The order passed by this Court disposing of the subject petition dated 6th March, 2025 is recalled. ii. Non-bailable warrants are issued for production of the Petitioner- Mr. Aman who has deposed the affidavit dated 4th March, 2025 in the subject petition filed before the Court. iii. The non-bailable warrant shall be executed by the SHO of the concerned area. iv. The non-bailable warrant shall be executed through Mr. Sanjay Lao, ld. Standing Counsel (Criminal) for the Government of NCT of Delhi. v. The Petitioner shall be produce....
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....498091297686 2. Mr. Rafan 985580468256 3. Mr. Sahib Alam 655605243580 4. Mr. Aman 453910321889 ii) The Oath Commissioner, Ms. Shilpa Verma shall physically appear before the Court on the next date of hearing along with her original register for the following dates i.e., 17th January, 2025, 31st January, 2025, 24th February, 2025 and 4th March, 2025. She shall also place on record a short affidavit as to the manner in which she attested the affidavits of the deponents. iii) The GST Department, Commissionerate East Delhi shall verify their records and place whatever documents they have of these Petitioners before this Court on the next date. In addition, the GST Department shall also verify if any other SCNs have been issued to these Petitioners for any of the financial years. A report in this regard shall also be placed by the next date of hearing." 11. Since the Aadhaar card copies were given by the ld. Counsel for the Petitioner, notice was issued to the UIDAI to place on record the details available with the UIDAI in respect of the said Aadhaar cards, as it clearly appeared that something was amiss. 12. The matter was then taken ....
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....an in Court on 29th May, 2025 i.e. today at 2:30 p.m. Further, the report filed by the UIDAI of all the four persons was handed over to ld. Counsels appearing for the Department i.e. Mr. Singla and Mr. Pawar as also to Mr. Sanjay Lao, ld. Standing Counsel (Criminal), GNCTD, to conduct further enquiries on the basis of the information in the said report and present the same before the Court. The relevant portion of the said order dated 28th May, 2025 reads as under: "10. Under these circumstances, it is deemed appropriate to direct the S.H.O. PS Shahdara to produce Mr. Aman in the Court on 29th May, 2025 at 2:30 p.m. XXXX 16. The UIDAI data is usually protected by the laws of privacy. However, considering the nature of the illegalities in this matter, the details supplied by the UIDAI of all the four persons including their addresses and mobile numbers are handed over to the Id. Counsels appearing for the Department i.e. Mr. Panwar and Mr. Singla as also to Mr. Sanjay Lao, Id. Standing Counsel (Criminal), GNCTD. 17. Let further enquiries be made about these individuals on the basis of their addresses and mobile numbers and whatever details can be ....
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....t they will cooperate with the investigating agencies, as and when required. 25. The other two individuals namely Mr. Satyapal and Mr. Rajan are not traceable till date. Observations & Findings 26. From all the events transpired in these petitions the following facts have emerged: i. The four petitions were filed by persons who did not have any authority on behalf of these firms as of now. ii. The four petitions were signed by deponents who were fictitious persons. iii. The Aadhaar Cards which were relied upon by Mr. Pranay Jain, ld. Counsel for the Petitioners are clearly forged and fabricated. iv. From the register of the Oath Commissioners, it is not even clear as to whether the persons who have signed the affidavits had even appeared before Ms. Shilpa Verma, Oath Commissioner or not as she could not recognize them even from their Aadhaar Card or photographs. v. The SCNs which were filed with the writ petitions were also forged and fabricated. 27. The four Petitioners i.e. M/s S R Enterprises, M/s Trix India Sales Corporation, M/s Royal Enterprises and M/s Compact Enterprises are stated to be run by the following people na....
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....l be prosecuted by the DGGI, in accordance with law. Oath Commissioner: 36. Ms. Shilpa Verma is present in the Court today. The original Registers of Ms. Verma, retained with the Court Master, are returned today. Ms. Verma submits that Oath Commissioners do not work under very comfortable circumstances and the areas where they sit are quite crowded. It is for the concerned Courts to create some area for attestation of affidavit by Oath Commissioners and Notaries. Ms. Verma further submits that at the place where Oath Commissioners sit, some directions could be issued for photographs to be taken for deponent so that such incidents do not occur in future. 37. Let the present order be communicated to the Law Secretary, Government of National Capital Territory of Delhi as also to the Secretary, Ministry of Law & Justice, Union of India for considering whether taking of photographs ought to be insisted upon when affidavits are attested by the Oath Commissioner and Notaries, so as to ensure physical presence of deponents. Final orders in the Writ Petitions 38. The orders which were passed by the Court i.e. two orders dated 3rd February 2025, and the orders dated 27th Febru....