2023 (12) TMI 468 - HC - GST

Cancellation of GST registration with retrospective effect - impugned order does not indicate any reasons for cancelling the registration - Violation of principles of natural justice - HELD THAT - It is apparent that the impugned order, which is bereft of any reasons, cannot be sustained. However, the petitioner is not aggrieved by the cancellation of late Shri Khurana s registration, as according to him the business was closed down. He is aggrieved by the cancellation to the extent that it is effected retrospectively, from the date the registration was granted. It is considered apposite to direct that the order cancelling the registration shall take effect from 18.05.2020, the date of the Show-Cause notice. This is because it is the petitioner s case that no business was conducted thereafter - petition disposed off.

Summary

Issues Involved:
The cancellation of GST registration with retrospective effect and lack of reasons provided for the cancellation.

Cancellation of GST Registration:
The petition was filed u/s the cancellation of GST registration of late Shri Varyam Dass Khurana with retrospective effect from 04.07.2017. The petitioner, son of the deceased, challenged the impugned order which canceled the registration without providing any reasons. It was noted that the cancellation was not contested in terms of closure of the business but was objected to due to its retrospective nature. The Court directed that the cancellation shall take effect from the date of the Show-Cause notice, i.e., 18.05.2020, as per the petitioner's claim that no business was conducted thereafter.

Legal Heir and Business Interest:
The judgment clarified that the order does not determine the legal heir or the rights, title, or interest of the petitioner in the business of late Varyam Dass Khurana. It was emphasized that the order does not prevent the authorities from pursuing tax recovery or statutory violations if any are found, in accordance with the law.

Conclusion:
The petition was disposed of with the direction to modify the cancellation of GST registration to take effect from the date of the Show-Cause notice, addressing the concern regarding the retrospective nature of the cancellation. The judgment also highlighted that the order does not establish the petitioner's legal status or interest in the deceased's business.