TaxTMI 
TaxTMI 
2024 (10) TMI 1655
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be filed post restoration for a period of four weeks from the day access to the portal made available; d) issue a Writ of Mandamus or any other Writ, order or direction; e) pass any other order or orders, direction or directions as this Hon'ble Court may deem fit and proper in the facts and circumstances of the case." 2. As would be evident therefrom, although a challenge is laid to the decisions rendered by the respondents while dealing with the application of the petitioner for revocation of cancellation, the petitioner also seeks the issuance of an appropriate writ providing for the cancellation to take effect from the date of the Show Cause Notice SCN dated 22 October 2022, instead of 30 November 2017. It is this prayer which has been principally addressed by Mr. Jain, learned counsel who appears for the writ petitioner before us. 3. Shorn of unnecessary details, the essential facts leading up to the filing of the present writ petition would appear to be as follows. 4. On 22 October 2022, the respondents issued a SCN calling upon the petitioner to explain why its registration ought not to be cancelled. This, since and according to them, on d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the aforesaid order. That application has also come to be rejected by the respondents on 30 December 2022 and has ultimately been upheld in the Order-in-Appeal dated 16 June 2023. 7. We note that the original SCN dated 22 October 2022 and which constituted the foundation for the action which was initiated against the writ petitioner had at no stage indicated an intent of the respondents to cancel registration with retrospective effect. This becomes apparent from a reading of the SCN itself and which is reproduced hereinbelow:- "Show Cause Notice for Cancellation of Registration Whereas on the basis of information which has come to my notice, it appears that your registration is liable to be cancelled for the following reasons: 1 The taxpayer was found non existent during the physical verification. Therefore, cancellation of GSTN has been initiated as per Rule 21 (a) of the CGST Rules '2017. You are hereby directed to furnish a reply to the notice within seven working days from the date of service of this notice. You are hereby directed to appear before the undersigned on 31/10/2022 at 12:30 PM If you fail to furnish....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks, General construction services of long-distance underground/ overland/ submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works, General construction services of local water & sewage pipelines, electricity and communication cables & related works, Installation, assembly and erection services of other prefabricated st....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 in respect of the supplies made by the tax payer during such period. Although, we do not consider it apposite to examine this aspect but assuming that the respondent's contention in this regard is correct, it would follow that the proper officer is also required to consider this aspect while passing any order for cancellation of GST registration with retrospective effect. Thus, a taxpayer's registration can be cancelled with retrospective effect only where such conse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 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 reply dated 15.12.2021 in response to the notice to show cause dated 04.09.2021" and the reason stated for the cancellation is "whereas no reply to notice show cause has been submitted". The order further states that effective date of cancellation of registration is 01.07.2017 i.e., a retrospective date. 6. Neither the show cause notice, nor the order spell out the reasons for retrospective ca....