Case Summary: M/S Rosmerta HSRP Ventures Private Limited vs. Union of India & Ors.
Case Number: WP (C) 1061/2024
Date of Order: May 27, 2024
Court Name: High Court of Delhi, New Delhi
Summary of the Case: The petitioner, M/S Rosmerta HSRP Ventures Private Limited, challenged the retrospective cancellation of their GST registration. The cancellation was ordered without a clear reason or proper notification. The court set aside the cancellation order, restoring the petitioner's GST registration while allowing the respondents to take lawful steps for recovery of any dues.
Facts of the Case:
· The petitioner is engaged in supplying High Security Registration Plates and held a GST registration.
· A show cause notice dated July 27, 2022, was issued seeking to cancel the registration without specific reasons.
· The cancellation order dated August 5, 2022, retrospectively effective from July 27, 2022, cited non-existence of the business address but lacked detailed reasoning.
· The petitioner claimed the principal place of business shifted to Kapashera and that they had not been able to respond to the show cause notice due to internal issues.
· Multiple requests for revival of the registration were made by the petitioner but were not responded to by the department.
Submission by Petitioner:
· The petitioner argued that the cancellation was arbitrary and lacked proper notice and reasoning.
· They pointed out their compliance and willingness to address pending formalities and file necessary returns.
Submission by Respondent:
· The respondent claimed that the registration was cancelled due to non-existent business premises.
Findings by Court:
· The court found the show cause notice and cancellation order lacking specific reasons and necessary details.
· It was noted that cancellation with retrospective effect must be based on objective criteria, not mere non-compliance.
· The court observed that cancelling a registration retrospectively could unjustly deny input tax credit to customers.
Conclusion:
The court set aside the order dated August 5, 2022, restoring the petitioner's GST registration while allowing the respondents to take lawful recovery steps if necessary.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
