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TMI Blog2024 (2) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... if the circumstances set out in the said sub-section are satisfied. 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. It is important to note that, according to the respondent, one of the consequences for cancelling a taxpayer 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 - Thus, a taxpayer s registration can be cancelled with retrospective effect only where such consequences are intended and are warranted. It is clear that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f discontinuation of business with effect from 01.02.2021. 4. Pursuant to the said application, notice was issued by the respondent on 10.03.2021 seeking additional information and documents relating to application for cancellation of registration stating Cancellation Details - Others (Please specify) - From the returns it is observed that you have availed disproportionately large amount of ITC and made a short payment of tax of 7041/- So, please clarify the same and provide necessary records. 5. Learned counsel for petitioner submitted that the petitioner had no knowledge about the said notice sent by the respondents seeking further documents and accordingly, could not respond to the same. 6. Learned counsel for respondent sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ply to show cause notice has been submitted. The order also seeks to cancel the registration with retrospective effect from 31.10.2017. However, there is no material on record to show as to why the registration is sought to be cancelled retrospectively. 12. Further, Show Cause Notice dated 19.03.2021 and order dated 20.05.2021 do not put the petitioner to notice that the registration is liable to be cancelled retrospectively. Accordingly, petitioner had no opportunity to even object to the retrospective cancellation of the registration. 13. Learned Counsel for Petitioner submitted that pursuant to the application for revocation of cancellation of GST registration dated 22.04.2023, Show Cause Notice dated 17.05.2023 was issued to the P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 17. It is important to note that, according to the respondent, one of the consequences for cancelling a taxpayer 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 this regard is correct, it would follow that the proper officer is also required to consider this aspect while passing any order for cancellation of GST registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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