Cancellation of registration needs express statutory power; later amendment could not retrospectively validate an earlier withdrawal.

A Commissioner cannot cancel an existing registration under section 12A unless an express statutory power exists, because cancellation is a substantive power and not merely incidental to the power of grant. The later insertion of section 12AA(3) conferred cancellation power only from 1-10-2004 and, absent clear language, did not operate retrospectively to validate an earlier cancellation. Section 21 of the General Clauses Act, 1897 did not authorise withdrawal of a quasi-judicial registration order in the absence of express authority. The cancellation was therefore without jurisdiction and unsustainable.

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Issues: Whether, as on 26-7-2004, the Commissioner had power to cancel registration already granted under section 12A, and whether the later insertion of section 12AA(3) with effect from 1-10-2004 could validate the cancellation by retrospective operation.

Analysis: The power to cancel an existing registration was a substantive power and not a mere procedural incident of the power to grant registration. The amendment inserting section 12AA(3) specifically conferred that power only from 1-10-2004 and contained no indication of retrospectivity. A statute affecting vested rights is presumed to operate prospectively unless the legislative language clearly indicates otherwise. The order under challenge was a quasi-judicial order, and section 21 of the General Clauses Act, 1897, which speaks of notifications, orders, rules and bye-laws in the context of delegated legislation, did not authorize rescission of such an order in the absence of an express statutory power. The Commissioner therefore lacked authority on the date of the impugned order to cancel the registration.

Conclusion: The cancellation of registration was without jurisdiction and unsustainable; the issue is decided in favour of the assessee.

Ratio Decidendi: In the absence of an express statutory provision conferring power to cancel an existing registration, a quasi-judicial registration order cannot be withdrawn or rescinded by invoking section 21 of the General Clauses Act, 1897, and a later amendment conferring such power operates prospectively unless retrospectivity is clearly provided.

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