TaxTMI 
TaxTMI 
2025 (1) TMI 257
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....ation of the writ petitioner under the Central Goods & Services Tax Act, 2017 CGST Act has come to be cancelled with retrospective effect from 19 December 2018. 3. For the purposes of evaluating the challenge which stands raised, we deem it apposite to take note of the following essential facts. 4. The petitioner had initially faced an action of cancellation with an order for cancellation being passed on 26 July 2022. The petitioner aggrieved by the aforesaid, applied for revocation on 18 October 2022. That application ultimately came to be allowed by the respondents on 26 December 2023. 5. Surprisingly, and on the very same day, the respondents proceeded to issue another Show Cause Notice SCN, this time calling upon the petitioner to explain why its Goods and Services Tax GST registration be not rejected. 6. That SCN reads as follows: - "Form GST REG-17 [See Rule 22(1)/ sub-rule (2A) of rule 21A] Reference Number: ZA07 l 223 l 70823N Date: 26/12/2023 To Registration Number (GSTIN/Unique ID) : 07BPLPJ8848EIZH DNYAJAIN IX/7600,G/F,R.P.NO.2, AMAR MOHALLA, OLD SEELAMPUR, GANDHI NAGAR, East Delhi, Delhi, 110031 ....
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.... notice issued dated 26/12/2023. The effective date of cancellation of your registration is 19/12/2018. 3. It may be noted that a registered person furnishing return under sub-section (1) of section 39 of the CGST Act, 2017 is required to furnish a final return in FORM GSTR-10 within three months of the date of this order. 4. You are required to furnish all your pending returns. 5. It may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation." 8. As is manifest from the above, the entire procedure as adopted by the respondents appears to be wholly arbitrary. It was on 26 December 2023 that they had ultimately chosen to allow the application made by the petitioner on 18 October 2022 seeking revocation of the original order of cancellation. 9. Inexplicably it is on the same date that yet another notice came to be issued calling upon the petitioner to show cause wh....
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....ffect and the manner in which such power should be exercised in accordance with the statutory scheme was an issue which was noticed in Ramesh Chander vs Assistant Commissioner of Goods and Services Tax, Dwarka Division, CGST Delhi & Anr.4 The Court in Ramesh Chander taking note of the contours of Section 29 had held:- "1. The petitioner impugns order in appeal dated 29.12.2023, whereby the appeal filed by the petitioner has been dismissed solely on the ground of limitation. Petitioner had filed the appeal impugning order dated 13.07.2022 whereby the GST registration of the petitioner was cancelled retrospectively with effect from 01.07.2017. Petitioner also impugns Show Cause Notice dated 07.04.2022. 2. Vide impugned Show Cause Notice dated 07.04.2022, petitioner was called upon to show cause as to why the registration be not cancelled for the following reasons:- "Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months" 3. Petitioner was in the business of services involving repair, alterations, additions, replacements, renovation, maintenance or remodelling of the building covered above, General c....
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....tire proceedings i.e. show cause notice and the order of cancellation are vitiated, we are of the view that no purpose would be served in relegating the petitioner to the stage of an appeal. 9. In terms of Section 29(2) of the Central Goods and Services Tax Act, 2017, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. The registration cannot be cancelled with retrospective effect mechanically. It can be cancelled only if the proper officer deems it fit to do so. Such satisfaction cannot be subjective but must be based on some objective criteria. Merely, because a taxpayer has not filed the returns for some period does not mean that the taxpayer's registration is required to be cancelled with retrospective date also covering the period when the returns were filed and the taxpayer was compliant. 10. It is important to note that, according to the respondent, one of the consequences for cancelling a tax payer's registration with retrospective effect is that the taxpayer's customers are denied the input tax credit availed i....
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....gistration be not cancelled for the following reason:- "Collects any amount representing the tax but fails to pay the same to the account of the Central/State Government beyond a period of three months from the date on which such payment becomes due" 3. Petitioner was engaged in the business of Sanitary ware Products & Accessories i.e., Baths, Shower, Washbasins, Seats and Cover etc. and possessed GST registration. 4. Show Cause Notice dated 04.09.2021 was issued to the Petitioner seeking to cancel its registration. However, the Show Cause Notice also does not put the petitioner to notice that the registration is liable to be cancelled retrospectively. Accordingly, the petitioner had no opportunity to even object to the retrospective cancellation of the registration. 5. Further, the impugned order dated 15.12.2021 passed on the Show Cause Notice dated 04.09.2021 does not give any reasons for cancellation. It, however, states that the registration is liable to be cancelled for the following reason "whereas no reply to the show cause notice has been submitted". However, the said order in itself is contradictory. The order states "reference to your ....