Quick Summary: Globe Coal Company's GST registration was canceled retroactively, but the Delhi High Court ruled in their favor, restoring the registration. This case highlights the importance of proper legal procedures in tax matters.
On December 4, 2025, the Delhi High Court made an important decision in favor of M/S Globe Coal Company. The company, represented by Mr. Sanjeev, had filed a request against the Commissioner of DGST, Delhi, after their GST registration was canceled going back in time. The cancellation was dated to July 21, 2020.
The issue began with a warning notice issued on November 11, 2021. The notice claimed that Globe Coal did not exist at its main place of business in Shakarpur, East Delhi. This led to a decision on August 17, 2023, canceling the company's GST registration retroactively.
"The notice dated 11th November, 2021 does not consider canceling with a past date..." - Justice Prathiba M. Singh
During the hearing, Justice Prathiba M. Singh and Justice Shail Jain examined the aspect of canceling with a past date. Globe Coal's lawyer argued that the property was indeed owned by the company, and canceling with a past date put their Input Tax Credits (ITC) at risk.
The court referred to previous decisions, stressing that canceling with a past date requires clear reasoning and cannot be done automatically.
The court found the cancellation order not acceptable. It instructed: - Restoring Globe Coal's GST registration. - Allowing access to the GST portal for filing past returns. - Permitting the Commissioner of DGST, Delhi, to conduct new inspections.
The cancellation order from August 17, 2023, and the appeal dismissal on March 11, 2025, were both overturned.
The court decided in favor of Globe Coal Company, restoring their GST registration and allowing them to access necessary tax resources. The case highlighted the need for clear and fair procedures in tax-related matters.
