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TMI Blog2024 (10) TMI 1307X X X X Extracts X X X X X X X X Extracts X X X X ..... ncellation shall consequently come into effect from 09 September 2022 i.e. the date when the show cause notice had been issued - petition allowed. - HON'BLE MR. JUSTICE YASHWANT VARMA AND HON'BLE MR. JUSTICE RAVINDER DUDEJA For the Petitioner Through: Mr. Vineet Bhatia, Mr. Aamnaya Jagannath Mishra, Mr. Bipin Punia and Mr. Keshav Garg, Advocates. For the Respondents Through: Mr Udit Malik, Additional Standing Counsel (Civil) for GNCTD. ORDER 1. The petitioner is aggrieved by the cancellation of its registration in terms of an order dated 27 September 2022. The aforesaid final order of cancellation was preceded by a show cause dated 09 September 2022 in which the following allegations were leveled: 1 Taxpayer found Non-Functioning/Not Existing at the Principal Place of Business 2. It appears that since the petitioner failed to furnish a response to that notice, a final order of cancellation came to be passed and which was made to apply with retroactive effect from 12 November 2019. Learned counsel for the petitioner submits that the order of cancellation cannot take effect from a posterior date unless reasons in support of that action are duly disclosed. It was submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereby the GST registration of the petitioner was cancelled retrospectively with effect from 01.07.2017. Petitioner also impugns Show Cause Notice dated 07.04.2022. 2. Vide impugned Show Cause Notice dated 07.04.2022, petitioner was called upon to show cause as to why the registration be not cancelled for the following reasons:- Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months 3. Petitioner was in the business of services involving repair, alterations, additions, replacements, renovation, maintenance or remodelling of the building covered above, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not 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. 10. 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 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 all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spective cancellation of the registration. 5. Further, the impugned order dated 15.12.2021 passed on the Show Cause Notice dated 04.09.2021 does not give any reasons for cancellation. It, however, states that the registration is liable to be cancelled for the following reason whereas no reply to the show cause notice has been submitted . However, the said order in itself is contradictory. The order states reference to your reply dated 15.12.2021 in response to the notice to show cause dated 04.09.2021 and the reason stated for the cancellation is whereas no reply to notice show cause has been submitted . 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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