2023 (12) TMI 944 - HC - GST

Cancellation of petitioner s GST registration with retrospective effect - failure to furnish the returns for a continuous period of six months - HELD THAT - In the present case, the impugned order does not set out any intelligible reason for cancelling the petitioner s GST registration, let alone doing so with retrospective effect - it is also material to note that the learned counsel for the petitioner had confined his challenge to the cancellation of the petitioner s GST registration with retrospective effect. It is stated that the petitioner had no objection to his GST registration being cancelled but the same cannot be done with retrospective effect, as the same has a cascading effect on the petitioner s customers whom the supplies were made. The impugned order to the extent that it directs cancellation of the petitioner s registration with retrospective effect, is set aside - petitioner s GST registration shall stand cancelled from the date of the issuance of the Show Cause Notice, that is, with effect from 06.06.2023. Petition disposed off.

Summary

Issues involved: Impugning an order cancelling GST registration with retrospective effect based on failure to furnish returns for six months.

Summary:
The petitioner filed a petition challenging the cancellation of their GST registration with retrospective effect. The impugned order was issued following a Show Cause Notice proposing the cancellation due to the petitioner's failure to furnish returns for six months. The registration was suspended from the date of the Show Cause Notice. The reasons provided in the impugned order for cancellation were found to be unintelligible by the court and lacked clarity. The court noted that the cancellation with retrospective effect must be based on valid reasons and not arbitrary decisions. The petitioner did not object to the cancellation itself but specifically challenged the retrospective aspect, highlighting its impact on customers. Consequently, the court set aside the portion of the impugned order directing cancellation with retrospective effect. The petitioner's GST registration was ordered to be cancelled from the date of the Show Cause Notice, and it was clarified that this decision did not prevent further proceedings if statutory violations were found. The petition was disposed of accordingly.