9911796707
TMI Blog2024 (8) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... rary. The Proper Officer s decision to cancel the registration with retrospective date must be informed by reason. The failure to file the returns for a continuous period of six months, absent anything additional, does not present any reason for cancellation of the taxpayer s GST registration even during the period for which returns were duly filed. In the present case, the decision for cancellation of the petitioner s GST registration with retrospective date, cannot be sustained, essentially for two reasons. First, that the impugned SCN did not propose any such action and therefore, retrospective cancellation of the petitioner s GST registration is in violation of the principles of natural justice. And, second, that the decision to cancel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned SCN, that is, 13.11.2023. 3. The petitioner did not respond to the impugned SCN. Consequently, the Proper Officer passed the impugned order cancelling the petitioner s GST registration. 4. The only reason set out in the impugned order, apart from reference to the impugned SCN reads as under: - Others Rule 22 (1)/sub-rule (2A) of rule 21A 5. The learned counsel for the petitioner submits that the reasons as set out in the impugned order are not intelligible. Rule 22 (1) of the Central Goods and Services Tax Rules, 2017 (hereafter the Rules) requires the Proper Officer to issue a notice to the taxpayer in FORM GST REG-17 requiring him to show cause within the period of seven working days from the date of service of notice as to why hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved by the prospective cancellation of its GST registration. 11. In terms of Section 29 (2) of the CGST Act, the Proper Officer is empowered to cancel the taxpayer s registration, including from a retrospective date, as he deems fit, for the reasons as set out in the said Section. However, it is trite that cancellation from retrospective date cannot be whimsical or arbitrary. The Proper Officer s decision to cancel the registration with retrospective date must be informed by reason. The failure to file the returns for a continuous period of six months, absent anything additional, does not present any reason for cancellation of the taxpayer s GST registration even during the period for which returns were duly filed. 12. In the present ..... X X X X Extracts X X X X X X X X Extracts X X X X
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