Judicial Intervention Overturns Arbitrary GST Registration Cancellation, Mandates Reasoned Decision-Making and Prospective Action The HC allowed the petition challenging retrospective GST registration cancellation. The order was set aside due to lack of reasoning and arbitrary ...
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The HC allowed the petition challenging retrospective GST registration cancellation. The order was set aside due to lack of reasoning and arbitrary retroactive application. The court directed registration cancellation from September 2018, while preserving authorities' right to initiate proceedings for potential statutory violations if substantiated.
Issues involved: Impugning an order cancelling GST registration with retrospective effect without providing reasons.
Summary: The petitioner challenged an order cancelling their GST registration with retrospective effect from 01.07.2017, based on a Show Cause Notice (SCN) alleging non-filing of returns for six months. The petitioner explained closure due to a sealing drive and attempted cancellation, supported by documentary evidence. The Court noted the authority's power to cancel registration retrospectively but emphasized against arbitrary exercise. The impugned order lacked reasons for cancellation, including retroactive application during periods of filed returns. Consequently, the petition was allowed, directing cancellation from September 2018, with a caveat for future proceedings if statutory violations occur.
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