TaxTMI 
TaxTMI 
2026 (4) TMI 500
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....tice, the petitioner filed replies/additional replies dated 27.01.2026, 19.02.2026 and 20.02.2026. On 20.02.2026, at 12:00 noon, the petitioner received another notice, through registered post, through which the petitioner was informed that the earlier notice sent to the petitioner dated 14.01.2026 be treated as a notice as to why its GST registration may not be cancelled retrospectively. At 07:00 p.m. on the same day i.e. 20.02.2026, the impugned order was passed cancelling the petitioner's GST registration with retrospective effect. (2) Through this petition the petitioner challenges order dated 20.02.2026 cancelling its GST registration with retrospective effect on the ground that the initial notice served upon the petitioner dated 14....
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....29 of CGST Act, subject to the provisions as contained therein. It is apposite to note that while such power of retrospective cancellation of registration is definitely conferred, it is apparent that such action can be taken only upon existence of specific contingencies and that an order under Section 29(2) of CGST Act must definitely reflect the reasons for such cancellation with retrospective effect. Furthermore, it is a basic, accepted and settled principle that concerned authority is enjoined upon to put the assessee to notice of the action which is intended to be taken and reasons or the premise on which such action is sought to be taken. Hon'ble the Supreme Court in ORYX Fisheries Pvt. Ltd. Vs. Union of India and others, 2010(13) ....
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....Section 29(2) must itself reflect the reasons which may have weighed upon the respondents to cancel registration with retrospective effect. Given the deleterious consequences which would ensue and accompany a retroactive cancellation makes it all the more vital that the order be reasoned and demonstrative of due application of mind. It is also necessary to observe that the mere existence of such a power would not in itself be sufficient to sustain its invocation. What we seek to emphasise is that the power to cancel retrospectively can neither be robotic nor routinely applied unless circumstances so warrant. When tested on the aforesaid precepts it becomes ex facie evident that the impugned order of cancellation cannot be sustained." ....
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....t is reiterated that there is no bar to cancel registration of a given entity/person with retrospective effect, however, due notice thereof should be given and cancellation can be given retrospective effect in case required circumstances are found to be established. Appropriate authority necessarily has to consider the facts, circumstances, material on record and arrive at a specific conclusion in this regard. This consideration should be so reflected in the order. Due process has to be followed. In some of the orders no reason for cancellation is given or said reason is a mere reproduction of the cryptic ground in the show cause notice. A bare perusal of these orders displays total non-application of mind by the authority. Attempt by respo....
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....oper officer has reasons to believe that the registration of a person is liable to be cancelled under section 29, he shall issue a notice to such person in FORM GST REG-17, requiring him to show cause, within a period of seven working days from the date of the service of such notice, as to why his registration shall not be cancelled. (2) The reply to the show cause notice issued under sub-rule (1) shall be furnished in FORM REG-18 within the period specified in the said sub-rule. (3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a perio....