2025 (8) TMI 1328

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.... order of cancellation of Goods and Service Tax (hereinafter, 'GST') Registration dated 20th December, 2024 (hereinafter, 'impugned order'). 3. Dr. Amit George, ld. Counsel for the Petitioner, submits that the SCN does not raise the issue of retrospective cancellation and hence, the impugned order cannot be sustained on the ground of being beyond the scope of SCN. 4. A perusal of the SCN would show that the only ground, on which cancellation was proposed, was that the Petitioner was not conducting business from the declared place of business. Reply dated 3rd December, 2024 was filed. Certain photographs of the premises have also been placed on record. 5. The order cancelling the GST registration has been effected retrospectively, w....

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....tence of such a power would not in itself be sufficient to sustain its invocation. What we seek to emphasise is that the power to cancel retrospectively can neither be robotic nor routinely applied unless circumstances so warrant. When tested on the aforesaid precepts it becomes ex facie evident that the impugned order of cancellation cannot be sustained. 6. We note that while dealing with the right of the respondents to cancel GST registration with retrospective effect 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. The Court in Ramesh Chander taking....

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....on 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 consequences are intended and are warranted. 11. The show cause notice does not even state that the registration is liable to be cancelled from a retrospective date. 12. The petition is allowed. The impugned show cause notice dated 07.04.2022, order of cancellation dated 13.07.2022 and the order in appeal dated 29.12.2023 are accordingly set aside, GST registration of the petitioner is restored, subject to petitioner filing requisite ....