9911796707
TMI Blog2024 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... fit 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 tax payer 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, it is not considered apposite to examine this aspect but assuming that the respondent s contention in required to consider this aspect while pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 2017 3. Petitioner was engaged in business of trading of V-Belt (Motor Parts) and possessed GST registration. 4. Show cause notice dated 07.10.2022 was issued to the petitioner on 15.01.2023. Though the notice does not specify any cogent reason, there is an observation in the notice stating failure to furnish returns for a continuous period of six months . Further, the said show cause notice also does 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. 5. Further, the impugned order dated 11.11.2022 passed on the Show Cause Notice dated 07.10.2022 does not give an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em fit 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. Merely, because a taxpayer has not filed the returns for some period does not 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. 10. It is important to note that, according to the respondent, one of the consequences for cancelling a tax payer s registration with retrospective effect is that the taxpayer s customers are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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