Retrospective GST registration cancellation cannot exceed the show-cause notice and was quashed by the Delhi High Court.

Retrospective cancellation of GST registration was found unsustainable where the show-cause notice proposed only cancellation and suspension from 05 November 2024, but did not put the assessee to notice that cancellation would operate from 01 April 2020. The Delhi HC held that an adverse administrative order cannot travel beyond the foundation laid in the notice, and the impugned order was quashed to the extent it gave retrospective effect. The assessee's undertaking to file pending and regular returns, along with stated medical difficulties, was noted in support of relief.

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Issues: (i) Whether cancellation of GST registration could be sustained with retrospective effect when the show-cause notice did not propose such retrospective cancellation.

Analysis: The show-cause notice only proposed cancellation of registration and recorded suspension from 05 November 2024, but it did not indicate that cancellation would operate retrospectively from 01 April 2020. The impugned order nonetheless cancelled the registration with retrospective effect. The petitioner also furnished an undertaking to file the pending and regular returns within the stipulated time, and the Court took note of the stated medical difficulties.

Conclusion: The retrospective cancellation was held to travel beyond the show-cause notice and could not be sustained. The order cancelling GST registration was quashed, in favour of the assessee.

Final Conclusion: The registration cancellation could not stand in its retrospective form, and the petitioner succeeded subject to the undertaking to file the pending returns.

Ratio Decidendi: An adverse administrative order cannot extend beyond the foundation laid in the show-cause notice, and retrospective cancellation of GST registration is unsustainable when it was not put to notice.

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