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2023 (12) TMI 733 - HC - GSTCancellation of petitioner s GST registration - impugned order does not record any reason for cancelling the petitioner s GST registration but it refers to the Show Cause Notice dated 26.09.2019 - principles of natural justice - HELD THAT - Section 29(2) of the Central Goods and Services Tax Act, 2017 empowers the proper officer to cancel the registration from any date including with retrospective effect if the authority deems it fit. However, the discretion to cancel the registration with retrospective effect cannot be exercised arbitrarily. In the present case, the only reason for proposing to cancel the petitioner s GST registration was that the petitioner had not filed the returns for a continuous period of six months. However, the registration has also been cancelled for a period during which the petitioner had filed the GST returns. As noted above, the impugned order provides no reason whatsoever for cancelling the petitioner s GST registration much less the reason for doing so with retrospective effect. The petitioner s GST registration are directed to be cancelled from September, 2018. However, it is clarified that this would not preclude the respondents from initiating any proceedings in case the petitioner has violated any statutory provisions - petition allowed.
Issues involved: Impugning an order cancelling GST registration with retrospective effect without providing reasons.
Summary: The petitioner challenged an order cancelling their GST registration with retrospective effect from 01.07.2017, based on a Show Cause Notice (SCN) alleging non-filing of returns for six months. The petitioner explained closure due to a sealing drive and attempted cancellation, supported by documentary evidence. The Court noted the authority's power to cancel registration retrospectively but emphasized against arbitrary exercise. The impugned order lacked reasons for cancellation, including retroactive application during periods of filed returns. Consequently, the petition was allowed, directing cancellation from September 2018, with a caveat for future proceedings if statutory violations occur.
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