2024 (3) TMI 395

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..... , as he may deem 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 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, it is not considered apposite to examine this aspect but assuming that the respondent s contention is required to consider this asp .....

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..... period of six months. 3. Thereafter, the impugned order dated 13.02.2021 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 whereas no reply notice to show cause has been submitted . However, the said order in itself is contradictory. The order states reference to your reply dated 12/02.2021 in response to the notice to show cause dated 03/02/2021 and the reason stated for cancellation is Whereas no reply to notice to show cause has been submitted . The order further states that effective date of cancellation of registration is 15.07.2017 i.e., a retrospective date. There is no material on record to show as to why the registrati .....

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..... . 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 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 is required to consider this aspect while passing any order for cancellation of GST regist .....

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