2025 (9) TMI 1055

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....1.2025 and 09.01.2025. According to the department, the inspection indicated that there was tax evasion on the part of the writ petitioner. Hence, show cause notice dated 25.07.2025 was issued proposing to cancel the writ petitioner's registration. Simultaneously, registration was also suspended. The writ petitioner did not offer his reply. He also did not appear for personal enquiry. The respondent issued the impugned order dated 29.08.2025 cancelling the petitioner's registration. Challenging the same, this writ petition has been filed. 4.The learned counsel appearing for the writ petitioner reiterated all the contentions set out in the affidavit filed in support of the writ petition and called upon this Court to set aside the ....

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....amount specified in the show cause notice. The order impugned in this writ petition is liable to be faulted on this ground. 8.The next ground based on which the impugned order has been passed is that the assessee did not file returns for the period from 01.04.2025 to 30.06.2025. This ground is again not sustainable. This is because as per Rule 21(h) and (I), the registration is liable to be cancelled if the registrant being required to file return under sub-section (1) of Section 39 for each month or part thereof, has not furnished returns for a continuous period of six months or being required to file return under proviso to sub-section (1) of Section 39 for each quarter or part thereof, has not furnished returns for a continuous period....

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....lause (b), has not furnished returns for a continuous period of six months; or (d) any person who has taken voluntary registration under sub-section (3) of section 25 has not commenced business within six months from the date of registration; or (e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts: Provided that the proper officer shall not cancel the registration without giving the person an opportunity of being heard." 10.Even though the authority may have the statutory power to cancel registration, this power must be not only be reasonably exercised but must be exercised only as a measure of last resort. If one's registration is cancelled, it would spell his e....