Retrospective GST registration cancellation and interim suspension upheld within the statutory framework despite writ challenge

Retrospective cancellation of GST registration under Section 29(2) of the CGST Act is permitted where the statute authorises cancellation from any date, including a past date, and the second proviso allows suspension of registration during pending cancellation proceedings. The expression "as may be prescribed" was read as referring to the procedure prescribed under Section 29. On the facts noted, the show cause notice alleged fraud and gave an opportunity to reply and seek personal hearing, which was not utilised. The challenge to Section 29(2) and Rule 21(a) therefore disclosed no ground for writ interference, and the writ petition was dismissed.

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Issues: Whether cancellation and suspension of GST registration with retrospective effect under Section 29(2) of the Central Goods and Services Tax Act, 2017 and Rule 21(a) of the Central Goods and Services Tax Rules, 2017 are impermissible in law and liable to be interdicted in writ jurisdiction.

Analysis: The statutory scheme of Section 29(2) permits cancellation of registration from any date, including a retrospective date. The second proviso also authorises suspension of registration during pendency of cancellation proceedings, and the expression "as may be prescribed" was read as referring to the prescription under Section 29 itself. In the facts noted, the show cause notice alleged fraud and also afforded an opportunity to reply and seek personal hearing, which the petitioner did not utilise. The challenge to Section 29(2) and Rule 21(a) was therefore not found to disclose any ground for interference.

Conclusion: The challenge was rejected and the writ petition was dismissed.

Final Conclusion: Retrospective cancellation and interim suspension of GST registration were held to be within the statutory framework, leaving the petitioner without writ relief.

Ratio Decidendi: Section 29(2) of the Central Goods and Services Tax Act, 2017 permits retrospective cancellation of registration and authorises suspension pending cancellation proceedings in accordance with the prescribed procedure.

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