TaxTMI 
TaxTMI 
2025 (9) TMI 1144
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....of the Constitution of India, inter alia, challenging the cancellation of registration order dated 10th June, 2025 (hereinafter, 'impugned order') by which the retrospective cancellation of the GST registration of the Petitioner with effect from 19th October, 2023 has been directed. 4. A Show Cause Notice (hereinafter, 'SCN') was issued to the Petitioner on 20th September, 2024 with the following remarks: 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. Section 29(2) (e)-registration obtained by means of fraud, wilful misstatement or suppression of facts ....
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....as been availed of. Some explanation regarding the same has been provided by the Petitioner in his reply. 6. Moreover, retrospective cancellation is also not sustainable in terms of the decisions in 'Ridhi Sidhi Enterprises v. Commissioner of Goods & Service Tax (CGST), South Delhi & Anr. (W.P.(C) 8061/2024). The relevant portion of the said decision reads as under: "5. As is manifest from a reading of Section 29, clauses (a) to (e) of Section 29(2) constitute independent limbs on the basis of which a registration may warrant cancellation. While the provision does enable the respondents to cancel that registration with retrospective effect, the mere existence or conferral of that power would not justify a revocation of registrat....
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....ot 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 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 retrospe....
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....he 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 ....
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....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 opposite to examine this aspect but assuming that the respondent's contention in required to consider this aspect while passing any or....