GST Registration Cancellation for Deceased Taxpayer: Retrospective Order Modified with Procedural Fairness Considerations

HC ruled on GST registration cancellation for deceased taxpayer. The court modified the retrospective cancellation to take effect from the show-cause notice date. The judgment clarified that the order does not determine legal heir rights or prevent future tax recovery proceedings, focusing solely on the registration cancellation's timing and procedural fairness.

---

---

Issues Involved:
The cancellation of GST registration with retrospective effect and lack of reasons provided for the cancellation.

Cancellation of GST Registration:
The petition was filed u/s the cancellation of GST registration of late Shri Varyam Dass Khurana with retrospective effect from 04.07.2017. The petitioner, son of the deceased, challenged the impugned order which canceled the registration without providing any reasons. It was noted that the cancellation was not contested in terms of closure of the business but was objected to due to its retrospective nature. The Court directed that the cancellation shall take effect from the date of the Show-Cause notice, i.e., 18.05.2020, as per the petitioner's claim that no business was conducted thereafter.

Legal Heir and Business Interest:
The judgment clarified that the order does not determine the legal heir or the rights, title, or interest of the petitioner in the business of late Varyam Dass Khurana. It was emphasized that the order does not prevent the authorities from pursuing tax recovery or statutory violations if any are found, in accordance with the law.

Conclusion:
The petition was disposed of with the direction to modify the cancellation of GST registration to take effect from the date of the Show-Cause notice, addressing the concern regarding the retrospective nature of the cancellation. The judgment also highlighted that the order does not establish the petitioner's legal status or interest in the deceased's business.

---