9911796707
TMI Blog2024 (3) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... , nor the order spell out the reasons for retrospective cancellation. In terms of Section 29(2) of the Central Goods and Services Tax Act, 2017, the proper officer may cancel the GST registration of a person from such date including any retrospective date, as he may deem fit if the circumstances set out in the said sub-section are satisfied. The 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 c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the proprietor of Jainna Enterprises and was engaged in the business of manufacturing of cooper wire and cables and possessed GST registration. 3. Vide Show Cause Notice dated 08.07.2021, petitioner was called upon to show cause as to why the registration be not cancelled on the ground that Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months. 4. Thereafter, the impugned order dated 28.07.2021 passed on the Show Cause Notice does not give reasons of cancellation. It, however, states that the registration is liable to be cancelled for the following reason No response received to query raised . However, the said order in itself is contradictory. The order states reference to your reply da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 9. 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, we do not consider it apposite to examine this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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