Disposed¶12

Shivi Kansal v. Union of India through Its Secretary & Ors.

Delhi HC8 Sept 2025W.P.(C)/13744/2025

Case brief

AI extract

What is this about?

Delhi High Court, W.P.(C) 13744/2025 & CM APPL. 56391/2025, decided 08-09-2025, Coram: Prathiba M. Singh & Shail Jain, JJ. GST registration of proprietorship cancelled retrospectively w.e.f. 01-07-2017 set aside for denial of opportunity to answer SCN dated 25-07-2022; death of sole proprietor; Form GST REG-16; reply by 31-10-2025; personal hearing and reasoned order; GST portal access within one week; merits left open; Articles 226 & 227 Constitution.

What did the court decide?

Impugned order of cancellation of GST registration set aside; Petitioner to file reply to the SCN dated 25th July 2022 by 31st October 2025, disclosing details of suppliers whose refunds are held up; personal hearing and reasoned order to follow; access to the GST Portal to be provided within one week; pending applications disposed of. ¶12

Shivi Kansal Vs Union of India through Its Secretary… — Writ and Judicial Review | Delhi HC (2025)

What the court decided

AI extract

Outcome

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Issue for consideration

Whether the retrospective cancellation of the Petitioner's GST registration, passed without any reply to or hearing on the SCN dated 25th July 2022, should be set aside so as to permit the Petitioner to file a reply and be heard.

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Court's answer

Since the Petitioner had no opportunity of dealing with the SCN and the sole proprietor died during the COVID-19 pandemic, the Petitioner is given an opportunity to file a reply to the SCN dated 25th July 2022.

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Ratio / Principle

Upon the reply being filed, the Petitioner is to be given a personal hearing and a reasoned order is to be passed in respect of the SCN.

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Key takeaways

The impugned order (dated 9th August 2025 as printed in para 10; described as dated 9th August 2023 in para 2) is set aside; the reply is to be filed by 31st October 2025, disclosing the details of the suppliers whose refunds have been held up so that the Department can look into them before deciding the SCN.ratio¶10
Access to the GST Portal shall be made available to the Petitioner within a period of one week.ratio¶11
This Court has not gone into the merits of the impugned order; the setting aside is confined to the denial of opportunity.obiter

Detailed headnote1 paragraphs

Writ petition under Articles 226 and 227 of the Constitution assailing the cancellation of the GST registration of M/s Kansal Associates, a proprietorship whose sole proprietor (Late Mr. Naresh Kansal) died on 28th April 2021, after which the Petitioner filed Form GST REG-16; a SCN dated 25th July 2022 went unanswered and the registration was cancelled retrospectively w.e.f. 1st July 2017 without a hearing. The High Court set aside the impugned order solely because the Petitioner never had an opportunity to deal with the SCN, directing that a reply be filed by 31st October 2025 disclosing the suppliers whose refunds were held up, that a personal hearing be given and a reasoned order passed, and that access to the GST Portal be restored within one week. The Court expressly did not examine the merits of the cancellation.

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$~73

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* IN THE HIGH COURT OF DELHI AT NEW DELHI

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Date of decision: 8^th September 2025

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- W.P.(C) 13744/2025 & CM APPL. 56391/2025

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SHIVI KANSAL .....Petitioner Through: Mr. Ankit Grewal, Mr. Sharad Jain & Mr. Nishant Shokeen, Advs.

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versus

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UNION OF INDIA THROUGH ITS SECRETARY & ORS.

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.....Respondents Through: Ms. Pushti Gupta, SPC with Mr. Sudhanshu Sharma, Adv. for R- 1(9599915879) Ms. Urvi Mohan, Adv. (7718992441)

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CORAM:

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JUSTICE PRATHIBA M. SINGH JUSTICE SHAIL JAIN

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Prathiba M. Singh, J. (Oral)

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This hearing has been done through hybrid mode.

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The present petition has been filed by the Petitioner under Articles 226 and 227 of the Constitution of India, inter alia , assailing the impugned order for cancellation of GST registration dated 9^th August 2023 (hereinafter, ‘impugned order’ ) by which the Petitioner’s GST registration has been cancelled retrospectively w.e.f. 1^st July 2017.

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The petition has been filed by Mr. Shivi Kansal, whose father had obtained a GST registration in the name of the firm, M/s Kansal Associates. The same was a sole proprietary concern of Late Mr. Naresh Kansal. The GST Registration No. of the proprietorship is 07AGSPK2607H1ZA and PAN Card

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Signature Not Verified

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Digitally Signed By:RAHUL Signing Da te:0 9.09.2025 17:58:56

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W.P.(C) 13744/2025 Page 1 of 3

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No. is AGSPK2607H. The GST registration of the said firm was obtained on 1^st July 2017.

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On 28^th April 2021, the sole proprietor of M/s Kansal Associates had passed away and thereafter, the Petitioner had filed Form GST REG-16 giving clear reasons that the sole proprietor of the said firm has passed away and at the relevant point in time i.e., 27^th February 2022, no proceeding was stated to be pending against the firm.

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However, thereafter, it came to the knowledge of the Petitioner that a Show Cause Notice (hereinafter, ‘SCN’ ) has been issued to the Petitioner on 25^th July 2022 on the following grounds:

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“1. Collects any amount as 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.”

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No reply was filed by the Petitioner to the said SCN and the impugned order came to be passed without hearing the Petitioner on merits.

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On a query from this Court, ld. Counsel for the Petitioner submits that the reason as to how the Petitioner came to know of the SCN and the impugned order was that some suppliers of the Petitioner had contacted the Petitioner in respect of non-process of refund of the suppliers because of the retrospective cancellation of the GST registration of the Petitioner.

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Heard. Since the Petitioner has not had an opportunity of dealing with the SCN as also because of the unfortunate demise of the sole proprietor of the firm during COVID-19 pandemic, the Petitioner is given an opportunity to file a reply to SCN dated 25th July 2022.

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Upon the reply being filed, the Petitioner be given personal hearing and

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Signature Not Verified

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Digitally Signed By:RAHUL Signing Da te:0 9.09.2025 17:58:56

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W.P.(C) 13744/2025 Page 2 of 3

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a reasoned order be passed in respect of the SCN.

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The impugned order dated 9^th August 2025 is set aside. Reply be filed by the Petitioner by 31st October 2025. The Petitioner shall also disclose in its reply, the details of the suppliers whose refund has been held up so that the Department can look into the same before deciding the SCN. The contact details of the Petitioner are as under:

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Email Address: infoqfoampe.com

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Mobile No.: 9896111022

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Access to the GST Portal shall be made available to the Petitioner within a period of one week. Needless to add that this Court has not gone into the merits of the impugned order.

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