R H a Enterprises Vs Sales Tax Officer Class II / Avato Ward 78 ,State Goods and Services Tax Department, Delhi

The present petition has been filed by the Petitioner- RHA Enterprises under Articles 226 and 227 of the Constitution of India, inter alia , challenging the order dated 19th January, 2024, wherein the GST registration of the Petitioner was retrospectively cancelled w.e.f. 04^th September, 2017. The Petitioner had applied for cancellation on 18^th April, 2023 which was rejected vide order dated 12^th June, 2023 (hereinafter, the ‘rejection order’).

¶11

On the last date of hearing, i.e., 9th May, 2025, Mr. Nitin Gulati, ld. Counsel for the Petitioner submitted that no reasons have been given in the rejection order. Thereafter, it was stated that a system generated Show Cause Notice was issued to the Petitioner on 13th November, 2023 which inter alia alleged that returns have not been filed by the Petitioner. This Show Cause Notice was issued much after the Petitioner had sought cancellation of the GST registration. Further, on the basis of the said notice, the impugned order cancelling the GST registration of the Petitioner retrospectively, was passed.

¶12

Page 1 of 3

¶13

W.P.(C) 5825/2025

¶14

This is a digitally signed order.

¶15

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2025 at 13:04:45

¶16

Hence, the present petition.

¶17

Post the above submissions made on 9th May, 2025, the Court put a query, as to whether there is any other Show Cause Notice which has been issued against the Petitioner under Section 73/74 of the Central Goods and Services Tax, Act, 2017 or whether the Petitioner’s name appears in any other Show Cause Notice for third parties.

¶18

To this query, Mr. Gulati submitted that he will check up on the same and revert by the next date of hearing. It was also submitted that one notice under Section 73 of the Central Goods and Services Tax, Act, 2017 is being challenged by next week.

¶19

Thereafter, the Court, on 9th May, 2025 listed this matter for today with the direction that the Department ought to verify if the Petitioner’s name or GST number is appearing in any other Show Cause Notice. The relevant portion of the order dated 9th May, 2025 is extracted hereunder:

¶20

“5. On a query from the Court as to whether there is any other Show Cause Notice which has been issued against the Petitioner under Section 73 or Section 74 of the Central Goods and Services Tax, Act, 2017 (hereinafter, 'the Act') or whether the Petitioner's name appears in any other Show Cause Notice for third parties, Mr. Gulati submits that he will check up on the same and revert by next date of hearing. In fact it is submitted by the Id. Counsel for the Petitioner that one notice under Section 73 of the Act is being challenged by next week.

¶21

6. The Department to verify if the Petitioner's name or GST number is appearing in any other Show Cause Notice.”

¶22

On 9^th May, 2025, the Department was directed to verify if there is any other Show Cause Notice related to the Petitioner or its GST number.

¶23

Today, Ms. Gupta, ld. Counsel submits that there is no other notice which

¶24

Page 2 of 3

¶25

W.P.(C) 5825/2025

¶26

This is a digitally signed order.

¶27

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2025 at 13:04:45

¶28

has been issued. However, Mr. Gulati, ld. Counsel, fairly concedes that in another writ petition being W.P.(C) 6560/2025 as also in W.P.(C) 6708/2025 , certain demands were challenged and the same were remanded back vide order dated 16^th May, 2025 and 19^th May, 2025.

¶29

The grievance in this petition is the retrospective cancellation of the GST registration. In the Show Cause Notice dated 13^th November, 2023, the only ground given was that the returns were not filed by the Petitioner. No reply was filed by the Petitioner and the cancellation order was passed on 19^th January, 2024. However, the same has been made retrospective.

¶30

In view of this fact that the Show Cause Notice did not contemplate retrospective cancellation, in terms of the judgment in Garg Candle Works v. Commissioner, Delhi GST , [(2025 SCC OnLine Del 3942] the retrospective cancellation is set aside.

¶31

The cancellation shall take effect from the date of the issuance of the Show Cause Notice notice i.e., 13^th November, 2023. 12. Petition is disposed of in these terms. All pending application(s), if any, are also disposed of.

¶32

PRATHIBA M. SINGH, J.

¶33

SHAIL JAIN, J.

¶34

AUGUST 6, 2025/ Rahul/rks

¶35

Page 3 of 3

¶36

W.P.(C) 5825/2025

¶37

This is a digitally signed order.

¶38

The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 12/08/2025 at 13:04:45

R H a Enterprises v. Sales Tax Officer Class II / Avato Ward 78 ,State Goods and Services Tax Department, Delhi

Case brief

What is this about?

What did the court decide?

R H a Enterprises v. Sales Tax Officer Class II / Avato Ward 78 ,State Goods and Services Tax Department, Delhi

Case brief

What is this about?

What did the court decide?

Why is it important?

What the court decided

Issues for consideration

Cases cited

Statutes considered

Procedural history

Parties & counsel

Coram

Case details

Similar cases

Swati Saista Vs the Government of NCT of Delhi & Anr.

Pheran Singh Yadav & Anr. Vs MCD

Demas Developers Private Limited Vs Bank of Baroda & Ors.

Lecoanet Hemant India Pvt. Ltd. (Successor / Transferee Company of Ip Support Services (India) Pvt. Vs Deputy Commissioner of Income Tax Circle 13(1), Delhi

Balaji Leather Exports Prop Rakesh Kumar Agarwal Vs Sales Tax Officer Class 2 and Anr.

Captain Harsha Mahendra Vs Alliance Air Aviation Limited & Anr.

Great River Coy Private Limited Vs Coal India Limited and Ors.

Ropas Logistics Private Limited Vs Coal India Limited & Ors.

Infigon Ventures Private Limited Vs Superintendent Central Goods and Services Tax Delhi West Range 134 & Anr.

M/S. Trans India Logistics Vs Gsto, WARD-60 & Anr.

Sharpline Broadcast Limited Vs Sales Tax Officer Class II Avato Ward 58 Zone 4 Delhi & Ors.

Zakir Khan Vs Principal Commissioner of Customs Import

Devinder Singh Vs Commissioner of Customs

Ms Phoolchand Harikishan through Its Proprietor Mr Satish Kumar Vs the Commissioner of Delhi Goods and Services Tax and Anr.