TaxTMI 
TaxTMI 
2025 (12) TMI 682
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....ed against the order dated 17th August, 2023 vide which the GST registration of the Petitioner has been cancelled with retrospective effect i.e., from 21st July, 2020 (hereinafter "the order of cancellation"). 4. The order of cancellation was passed from proceedings initiated under Show Cause Notice for cancellation of registration dated 11th November, 2021, which was issued on the ground that the Petitioner was found to be non-functioning/non-existent at the principal place of business. 5. The submission of the ld. Counsel for the Petitioner is that since the cancellation is retrospective, the Input Tax Credits (hereinafter "ITC") which have been availed of by the Petitioner may be jeopardized. He also submits that the concerned prem....
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....dered the matter. A perusal of the SCN dated 11th November, 2021 shows that the same does not contemplate retrospective cancellation which has been directed vide the cancellation order dated 17th August, 2023. The settled position in law is that if the SCN does not contemplate retrospective cancellation the order for cancellation retrospectively would not be tenable. The relevant part of the judgment in Riddhi Siddhi Enterprises vs. Commissioner Of Goods And Services Tax (Cgst), South Delhi & Anr., W.P.(C) 8061/2024 is 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 enab....
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....act, 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 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 someperiod does not mean that the taxpayer's registra....
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....w 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 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 re....
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....tion 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 requir....