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TMI Blog2024 (12) TMI 130X X X X Extracts X X X X X X X X Extracts X X X X ..... v. For the Respondents Through: Ms. Shreya Bhardwaj, SPC for UOI. Mr. Harpreet Singh, SSC with Ms. Suhani Mathur, Mr. Shivang Chawla, Advs. ORDER PER 1. This writ petition has been preferred seeking the following reliefs:- a. Issue a writ of certiorari or in the nature of certiorari to set aside the Show Cause Notice dated 15/01/2023 and order date 28.02.2023 of Cancellation of GST Registration w.e.f. 02.07 .2017 by proper officer. b. Issue a writ of mandamus or in the nature of mandamus directing the respondents to cancel the GST registration from the date of application for cancellation i.e. 30.01 .2021 and not retrospectively from the date of GST registration i.e. 02.07.2017. c. As any other writ/ direction/ order as the Hon ble Court deems just and appropriate in the facts and circumstances. 2. The petitioner is essentially aggrieved by the order cancelling its Goods and Services Tax registration with retrospective effect from 02 July 2017. The reliefs thus claimed was restricted to the aforesaid issue only. 3. The record would reflect that the petitioner had earlier moved an application seeking cancellation of its registration under the Central Goods and Services Tax Act, 2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, the amount payable by you and the computation and basis thereof is as follows: The amounts determined as being payable above are without prejudice to any amount that may be found to be payable you on submission of final return furnished by you. You are required to pay the following amounts on or before failing which the amount will be recovered in accordance with the provisions of the Act and rules made thereunder. Head Central Tax State Tax/UT Tax Integrated Tax Cess Tax 0 0 0 0 Interest 0 0 0 0 Penalty 0 0 0 0 Others 0 0 0 0 Total 0.0 0.0 0.0 0.0 7. As is manifest from the above, the respondents have taken the position that no response had been received from the taxpayer and that it would also be evident from the record that the petitioner had incorrectly availed ITC benefits. However, we need not go into those issues since the challenge and the present writ petition stands restricted to the retrospective cancellation of the petitioners registration under the Act. 8. While speaking on the power that stands conferred by Section 29 of the Act, we had in Riddhi Siddhi Enterprises vs. Commissioner of Goods and Services Tax (CGST), South Delhi Anr. W.P.(C) 8061/2024 decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring 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 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 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 m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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