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TMI Blog2024 (3) TMI 323X X X X Extracts X X X X X X X X Extracts X X X X ..... e to be cancelled for the following reason whereas no reply to notice to show cause has been submitted . Neither the show cause notice nor the order spell out the reasons for cancellation. In fact, order dated 29.01.2021 does not qualify as an order of cancellation of registration. On one hand, it states that the registration is liable to be cancelled and on the other, in the column at the bottom there are no dues stated to be due against the petitioner and the table shows nil demand. 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 a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TICE SANJEEV SACHDEVA AND HON'BLE MR. JUSTICE RAVINDER DUDEJA Advocates who appeared in this case: For the Petitioner: Mr. R.P. Singh and Mr. Priyank Goel, Advocates For the Respondent: Ms. Shaguftha Hameed, Mr. Prateek Badhwar, Ms. Samridhi Vats, Advocates for Mr. Rajeev Aggarwal, ASC JUDGMENT SANJEEV SACHDEVA, J. (ORAL) 1. Petitioner impugns order dated 25.08.2021 whereby the GST registration of the Petitioner was cancelled retrospectively with effect from 07.07.2017. Petitioner also impugns show cause notice dated 30.06.2021. 2. Vide show cause notice dated 30.06.2021 petitioner was called upon to show cause as to why the registration be not cancelled for the following reason:- "The firm has made purchases from suspicio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "whereas no reply to notice to show cause has been submitted". The order further states that effective date of cancellation of registration is 07.07.2017 i.e., a retrospective date. There is no material on record to show as to why the registration is sought to be cancelled retrospectively. 9. Neither the show cause notice nor the order spell out the reasons for cancellation. In fact, in our view, order dated 29.01.2021 does not qualify as an order of cancellation of registration. On one hand, it states that the registration is liable to be cancelled and on the other, in the column at the bottom there are no dues stated to be due against the petitioner and the table shows nil demand. 10. Learned Counsel for the petitioner submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orrect, it would follow that the proper officer is also required to consider this aspect while passing any order for cancellation of GST registration with retrospective effect. Thus, a taxpayer's registration can be cancelled with retrospective effect only where such consequences are intended and are warranted. 14. It may be further noted that both the Petitioners and the department want cancellation of the GST registration of the Petitioner, though for a different reason. 15. In view of the fact that Petitioner does not seek to carry on business or continue the registration, the impugned order dated 25.08.2021 is modified to the limited extent that registration shall now be treated as cancelled with effect from 29.08.2019 i.e., the date ..... X X X X Extracts X X X X X X X X Extracts X X X X
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