2025 (9) TMI 1457

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....2)(e) of the Central Goods and Service Tax Act, 2017 (hereinafter, 'CGST Act') as the firm was found to be non-existent. The reply was to be filed by the Petitioner to the said SCN, however, no reply was filed by the Petitioner and the GST registration of the Petitioner got cancelled. 5. The Petitioner filed an application for revocation of the said cancellation on 16th December, 2024. However, the order has been passed rejecting the same on 16th April, 2025. Various details have been sought by the CGST Department from the Petitioner. The same are as under: "1. Reason for revocation of cancellation - Others (Please specify) - I. Please provide copy of all the rent agreements. 2. Please provide copy of electricity bill, property deed 3. Please provide aadhar card and pan card of proprietor. 4. Please provide aadhar card of the owner of the property. 5. Please provide copy of bank statements/ITR/26 AS for each FY since the date of registration. 6. Please verify the photo copy with the original documents." 6. The settled legal position is that if the SCN did not contemplate retrospective cancellation, the order cannot retrosp....

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....itioner 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 petitioner's GST registration is made operative with effect from the date of the SCN,....

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....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, it would follow that the proper officer is also required to consider this asp....

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.... 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 tax payer's registration with retrospective effect is that the taxpayer's c....