Retrospective GST registration cancellation requires prior notice; cancellation without disclosed retrospective effect was quashed.

Retrospective cancellation of GST registration cannot be sustained where the show cause notice does not disclose or propose cancellation from an earlier date. The notes state that the registration was cancelled retrospectively despite the absence of prior notice on that proposed effect. Applying the relevant Division Bench ruling, and with the Revenue not disputing the facts or governing legal position, the cancellation order was quashed in favour of the assessee.

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Issues: Whether cancellation of GST registration with retrospective effect can be sustained where the show cause notice did not propose or disclose retrospective cancellation.

Analysis: The cancellation order retrospectively cancelled registration from 01.05.2023, while the show cause notice did not refer to any proposed retrospective cancellation. The matter was governed by the applicable Division Bench ruling, and the Revenue did not dispute either the factual position or the governing legal position.

Conclusion: Retrospective cancellation of the GST registration without prior notice of such proposed retrospective effect cannot be sustained; the cancellation order was quashed, in favour of the assessee.

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