Retrospective GST registration cancellation needs specific reasons; absent them, the effective date issue may be remitted.

Retrospective cancellation of GST registration cannot be sustained where the show cause notice and cancellation order do not state any specific reason for giving retrospective effect. The HC therefore set aside the retrospective operation of the cancellation and remitted only the effective-date issue to the Proper Officer. The petitioner was permitted to file a detailed reply with supporting documents, and the Proper Officer was directed to pass a fresh reasoned order after hearing the petitioner. The underlying dispute on the existence of business was left open for fresh adjudication.

---

---

Issues: Whether the retrospective cancellation of GST registration could be sustained in the absence of any specific reason in the show cause notice and cancellation order, and whether the matter ought to be remitted for fresh decision on the effective date of cancellation.

Analysis: The petitioner confined the challenge to the retrospective operation of the cancellation. The record showed that the show cause notice and the final cancellation order did not assign any specific reason for giving retrospective effect, though the revenue claimed supporting material from inspection and verification. In these circumstances, the Court considered it appropriate not to finally decide the merits of the alleged non-existence of business, and instead to afford the petitioner an opportunity to file a detailed reply with supporting documents before the Proper Officer, who was directed to pass a fresh reasoned order after hearing the petitioner. The remand was limited to the question whether cancellation should operate from 15.03.2022 or 17.01.2025.

Conclusion: The retrospective operation of the cancellation order was set aside and the issue of the effective date of cancellation was remitted to the Proper Officer for fresh adjudication after hearing the petitioner.

Final Conclusion: The petitioner obtained partial relief on the limited question of retrospective cancellation, while the underlying dispute was left open for fresh decision by the Proper Officer.

Ratio Decidendi: Where a cancellation order gives retrospective effect without assigning specific reasons, the matter may be remitted for fresh, reasoned consideration after affording the affected party an opportunity of hearing.

---