TaxTMI 
TaxTMI 
2025 (8) TMI 1455
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....cel the GST registration of the Petitioner and directing the Petitioner to show cause as to why its registration ought not to be cancelled. The reasons provided in the said SCN was failure to furnish returns for a period of six months. Ld. Counsel for the Petitioner submits that no reply was filed to the said SCN and the date of hearing was also fixed on 02nd August, 2023 which was also not attended by the Petitioner. The same resulted in order for cancellation of GST registration dated 30th March, 2024 with retrospective effect from 01st April, 2023. 5. The grievance of the Petitioner is that the SCN did not allege retrospective cancellation at all. Further it is submitted by the ld. Counsel for the Petitioner that the reasons for the delay in filing the appeal was due to the medical exigency of the Petitioner himself. It is also submitted on behalf of the Petitioner that returns of the Petitioner have been filed regularly till December, 2022. 6. Issue notice. Mr. Harpreet Singh, ld. SSC who is present in Court is requested to accept notice. 7. The irregularity, if any, is only for the first quarter of 2023 for which the returns were not filed. The SCN does not state that....
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.... registration with retrospective effect from 11.09.2017. 9. The petitioner filed an appeal against the impugned order cancelling its registration. However, the same was rejected by the appellate authority by the order dated 14.05.2024 on the ground that the petitioner's appeal was barred by limitation. 10. As noted above, the reason for which the petitioner's GST registration was cancelled was not reflected in the SCN. Although, the petitioner claims that it did not receive the SCN, it is apparent that even if it had, the same provided it no opportunity to respond to the reasons as set out in the impugned order cancelling its GST registration. 11. As noted above, the petitioner is not aggrieved by the cancellation of its GST registration as it had closed down its business. The petitioner is, essentially, aggrieved by cancelling of its GST registration with retrospective effect. 12. The present petition was listed on 29.08.2024 and the learned counsel appearing for the respondents sought time to take instructions. 13. The learned counsel for the respondents states that the respondents have no objection if the cancellation of the petitione....
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....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 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, i....
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.... 7. Learned Counsel for the Petitioner submits that the said order reflected that the GST registration of petitioner stands cancelled from 01.07.2017 even though returns thereafter have been filed by the Petitioner. 8. He further submits that the petitioner is no longer interested in continuing the business and the business has been discontinued. 9. In terms of Section 29(2) of the Act, 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. 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....