TaxTMI 
TaxTMI 
2025 (9) TMI 319
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....25 3. The present petition has been filed by the Petitioner challenging the order dated 22nd November, 2024 (hereinafter "the impugned order") by which the Goods and Services Tax ("GST") Registration of the Petitioner has been cancelled retrospectively with effect from 29th December, 2017. 4. The Show Cause Notice dated 11th November, 2024 (hereinafter "SCN") was issued to the Petitioner with the following remarks: "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. Rule 21(e)-person avails ITC in violation of the provisions of section 16 of the Act or the rules made thereunder. Remarks: "YOU HAVE....
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....parent to note that non-payment of dues for a period of three months is not a prescribed ground for cancelling the petitioner's GST registration. 11. It is also important to note that the impugned order sets out a tabular statement, which indicates that no amount has been determined as payable by the petitioner. The Central Tax, State Tax, Integrated Tax and Cess payable by the petitioner is reflected as, "0.0". 12. Apart from the above, the impugned order has also been passed in violation of principles of natural justice. Although the SCN called upon the petitioner to appear for a personal hearing at the appointed date and time, no such date or time was indicated. Thus, in effect the petitioner was not afforded an opportu....
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....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 petitioner's GST registration is made operative with effect from the date of the SCN, that is, with effect from 24.05.2022. 14. In view of above, the present petition is disposed of with the direction that the petitioner's GST registration stands cancelled with effect from 24.05.2022 (being the date on which it was suspended) and not with retrospective effect from 11.09.2017. 15. The impugned order is modified to the aforesaid extent." 12. The relevant part of the judgment in 'Riddhi Siddhi Enterprises (supra)' is as under: "5. As is mani....
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....nder vs Assistant Commissioner of Goods and Services Tax, Dwarka Division, CGST Delhi & Anr. The Court in Ramesh Chander taking note of the contours of Section 29 had held:- "1-5..... 6. Neither the show cause notice, nor the order spell out the reasons for retrospective cancellation. In fact, in our view, order dated 13.07.2022 does not qualify as an order of cancellation of registration. 7-8...... 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 cancell....
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....accordingly set aside. GST registration of the petitioner is restored, subject to petitioner filing requisite returns upto date." 7. We further take note of the judgment in Delhi Polymers vs Commissioner, Trade and Taxes & Anr. wherein the following was observed :- "1-3..... 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....
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....tion 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 tax....