Commercial vehicle depreciation, scientifically determined warranty provisions and exempt-income disallowances were resolved in favour of the taxpayer...
The HC ruled that retrospective cancellation of GST registration requires proper justification and adherence to natural justice principles. Following Riddhi Siddhi Enterprises precedent, the Court held that Section 29 of CGST Act allows retrospective cancellation only when deemed fit based on objective criteria, not mechanically. The authority's failure to provide reasons in the Show Cause Notice supporting retrospective cancellation and failure to give prior notice of such intent invalidated the action. The Court modified the impugned order, directing that cancellation would take effect from the SCN date (25 October 2021) rather than the retrospective date (23 October 2020) originally imposed.
The HC ruled that retrospective cancellation of GST registration requires proper justification and adherence to natural justice principles. Following Riddhi Siddhi Enterprises precedent, the Court held that Section 29 of CGST Act allows retrospective cancellation only when deemed fit based on objective criteria, not mechanically. The authority's failure to provide reasons in the Show Cause Notice supporting retrospective cancellation and failure to give prior notice of such intent invalidated the action. The Court modified the impugned order, directing that cancellation would take effect from the SCN date (25 October 2021) rather than the retrospective date (23 October 2020) originally imposed.
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