Subhana Fashion Vs Commissioner Delhi Goods and Service Tax (Delhi High Court)

Delhi High Court held that that non-payment of dues for a period of three months is not a prescribed ground under section 29 of the Central Goods and Services Tax Act for cancelling the petitioner’s GST registration. Thus, order set aside.Facts- The petitioner has filed the present petition impugning an order dated 06.2022 whereby the petitioner’s GST registration was cancelled with retrospective effect from 01.07.2017. The impugned order was issued pursuant to a Show Cause Notice dated 03.09.2021, whereby the petitioner was called upon to show cause why its GST registration not be cancelled. The only reason set out in the SCN for proposing to cancel the petitioner’s GST registration was failure to pay any amount of tax, interest or penalty to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due.Conclusion- Held that that non-payment of dues for a period of three months is not a prescribed ground for cancelling the petitioner’s GST registration. Further, it is also important to note that the impugned order sets out a tabular statement, which indicates that no amount has been determined as payable by the petitioner. The Central Tax, State Tax, Integrated Tax and Cess payable by the petitioner is reflected as, “0.0”. Thus, impugned order set aside.