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TMI Blog2024 (10) TMI 1309X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;BLE MR. JUSTICE YASHWANT VARMA AND HON'BLE MR. JUSTICE RAVINDER DUDEJA For the Petitioner Through: Mr. Pranay Jain Mr. Karan Singh, Advs. For the Respondent Through: Mr. Rajeev Aggarwal, ASC with Mr. Shubham Goel Mr. Mayank Kamra, Advs. ORDER CM APPL. 57374/2024 Exemption allowed, subject to all just exceptions. Application shall stand disposed of. W.P.(C) 13710/2024 1. The present writ petition has been preferred seeking the following reliefs: a) issue a writ of mandamus or any other appropriate writ or direction to directing respondent to cancel the GST registration of the petitioner w.e.f. 06.08.2024 as the petitioner has closed its business from 06.08.2024; b) issue any other writ, order or direction which this Hon'ble Court may deem fit and proper in the aforesaid facts and circumstances of the case. c) Also pass any other further order or direction in the facts and circumstances of the present petition. 2. The petitioner is stated to have obtained its Goods and Services Tax [GST] registration on 02 April 2024 and to have sought cancellation of the same on 06 August 2024 as a result of the closure of its business. 3. The respondent, however, has rejected the applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be noted that the cancellation of registration shall not affect the liability to pay tax and other dues under this Act or to discharge any obligation under this Act or the rules made thereunder for any period prior to the date of cancellation whether or not such tax and other dues are determined before or after the date of cancellation. 6. As is manifest from the above, the order rejecting the application for cancellation of registration, the SCN as well as the final order, have failed to assign or record any substantive reasons in support of the ultimate conclusion. It has instead proceeded to reject the application for cancellation on the solitary ground that the reply of the taxpayer has not been found satisfactory and had simultaneously issued a SCN and a final order of cancellation of registration merely stating as follows:- others . 7. We had while dealing with the aspect of retrospective cancellation of registration in Riddhi Siddhi Enterprises vs. Commissioner of Goods and Services Tax (CGST), South Delhi Anr. W.P.(C) 8061/2024 decided on 25 September 2024 and upon examining the scope of Section 29 of the Central Goods and Services Tax Act, 2017 [CGST Act] observed as f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... General construction services of harbours, waterways, dams, water mains and lines, irrigation and other waterworks, General construction services of long-distance underground/ overland/ submarine pipelines, communication and electric power lines (cables); pumping stations and related works; transformer stations and related works, General construction services of local water sewage pipelines, electricity and communication cables related works, Installation, assembly and erection services of other prefabricated structures and constructions and possessed a GST registration. 4. A show cause notice was issued to the petitioner on 07.04.2022 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. The show cause notice requires the petitioner to appear before the undersigned i.e. authority issuing the notice. Notice does not give the name of the officer or place or time where the petitioner has to appear. 5. Further the order dated 13.07.2022 passed on the show cause notice does not give any reasons for cancellation of the registration. It, however, states that the registration is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riod. Although, we do not consider it apposite to examine this aspect but assuming that the respondent s contention in this regard is correct, 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. 11. The show cause notice does not even state that the registration is liable to be cancelled from a retrospective date. 12. The petition is allowed. The impugned show cause notice dated 07.04.2022, order of cancellation dated 13.07.2022 and the order in appeal dated 29.12.2023 are accordingly set aside. GST registration of the petitioner is restored, subject to petitioner filing requisite returns upto date. 13. It is clarified that since the petitioner could not have filed the return after the GST registration was suspended, there shall be no liability to pay any penalty or fine for delayed filing. However, this would only apply in case petitioner files an affidavit of undertaking that petitioner has not carried out any business or raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d . The order further states that effective date of cancellation of registration is 01.07.2017 i.e., a retrospective date. 6. Neither the show cause notice, nor the order spell out the reasons for retrospective cancellation. In fact, in our view, order dated 15.12.2021 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. 7. Learned Counsel for the Petitioner submits that the said order reflected that the GST registration of petitioner stands cancelled from 01.07.2017 even though returns thereafter have been filed by the Petitioner. 8. He further submits that the petitioner is no longer interested in continuing the business and the business has been discontinued. 9. In terms of Section 29(2) of the Act, 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. Registration cannot be cancelled with retrospective effect mechanically. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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