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TMI Blog2024 (12) TMI 576X X X X Extracts X X X X X X X X Extracts X X X X ..... ad also been searched by the authorities working under the DGGI. The respondents, in terms of a notice of 20 January 2023, however, allude to an inspection report submitted by the Deputy Commissioner, Anti-Evasion dated 03 June 2022. It is the conceded case that a copy of the said communication was neither provided to the writ petitioner nor was it ever confronted with the same. It is this material which appears to have formed the basis for the passing of the order of 20 February 2024 rejecting the application for revocation. It is found that although it was alleged that the registration was liable to be cancelled on the ground of fraud, willful misstatement or suppression of facts, none of the authorities, including the appellate authority, have rested their opinion on any material which may have even remotely indicated that the registration certificate when originally obtained was the outcome of the practice of fraud, willful misstatement or suppression of facts. The impugned orders dated 29 December 2022, 20 February 2024, as well as the order of the appellate authority dated 08 July 2024 are hereby quashed - petition allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... n response to the notice to show cause dated 13/06/2022 Whereas the undersigned has examined your reply and submissions made at the time of hearing, and is of the opinion that your registration is liable to be cancelled for following reason(s). I. Neither attended PH nor responded to the SCN issued on 13.06.2022. Hence, cancelled. The effective date of cancellation of your registration is 03/07/2017 Determination of amount payable pursuant to cancellation: Accordingly, 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 6. As is evident from the aforesaid extract, not only was the registration cancelled, but the said cancellation was also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uary 2023, however, allude to an inspection report submitted by the Deputy Commissioner, Anti-Evasion dated 03 June 2022. It is the conceded case before us that a copy of the said communication was neither provided to the writ petitioner nor was it ever confronted with the same. It is this material which appears to have formed the basis for the passing of the order of 20 February 2024 rejecting the application for revocation. 11. The appellate authority has, while examining the contentions which were addressed on the appeal which came to be preferred, has observed as follows:- "4. I have carefully gone through all the documents available on record and various submissions made by the appellant. Firstly, I will examine whether the instant appeal has been filed within prescribed time limit. I note that Sub-Section (1) of Section 107 of CGST Act, 2017 prescribes the period of filing an appeal as under: "Section 107 {1) Any person aggrieved by any decision or order passed under this Act or the State Goods and Service Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the petitioner. However, I find that the appellant has not submitted any documentary evidence in order to prove genuineness of business transactions made by the appellant during the relevant period. A mere submission of facts without evidencing the same cannot be considered at face value. 7. Therefore, from the foregoing facts and findings wherein I observe that the appellant has failed to submit relevant documents to prove genuineness of transaction made by the appellant during the relevant period and has also not submitted necessary documentary evidences to substantiate their existence at the registered premises, before the appellate authority. Hence, I am of the considered view that the registration of the appellant is liable to be remain cancelled. Therefore, I do not find any reason to interfere with the said impugned order passed by the adjudicating authority as the same is legal End maintainable in law. Accordingly, I pass the following order: 8. The appeal filed by M/s Bani Enterprises (Vijay Kumar Sharma), Shop No. 212, Property Bearing No. 2853/17, Network Plaza Beadon Pura, Karol Bagh, Delhi-110005 against Order-In-Original No. ZA07022411405QD dated 20.02.2024 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower should be exercised in accordance with the statutory scheme was an issue which was noticed in Ramesh Chander vs Assistant Commissioner of Goods and Services Tax, Dwarka Division, CGST Delhi & Anr. The Court in Ramesh Chander taking note of the contours of Section 29 had held:- "1. The petitioner impugns order in appeal dated 29.12.2023, whereby the appeal filed by the petitioner has been dismissed solely on the ground of limitation. Petitioner had filed the appeal impugning order dated 13.07.2022 whereby 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 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, we are of the view that no purpose would be served in relegating the petitioner to the stage of an appeal. 9. In terms of Section 29 (2) of the Central Goods and Services Tax Act, 2017, 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. The 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. 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 consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral/State Government beyond a period of three months from the date on which such payment becomes due" 3. Petitioner was engaged in the business of Sanitary ware Products & Accessories i.e., Baths, Shower, Washbasins, Seats and Cover etc. and possessed GST registration. 4. Show Cause Notice dated 04.09.2021 was issued to the Petitioner seeking to cancel its registration. However, the Show Cause Notice also does not put the petitioner to notice that the registration is liable to be cancelled retrospectively. Accordingly, the petitioner had no opportunity to even object to the retrospective 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 sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration of the Petitioner, though for a different reason. 12. In view of the fact that Petitioner does not seek to carry on business or continue the registration, the impugned order dated 15.12.2021 is modified to the limited extent that registration shall now be treated as cancelled with effect from 04.09.2021 i.e., the date when the Show Cause Notice was issued. 13. It is clarified that Respondents are also not precluded from taking any steps for recovery of any tax, penalty or interest that may be due in respect of the subject firm in accordance with law. 14. Petition is accordingly disposed of in the above terms." 8. In view of the aforesaid and in light of an abject failure on the part of the authority to assign even rudimentary reasons for a retroactive cancellation, we find ourselves unable to sustain the order impugned." Accordingly, and for all the aforesaid reasons, we find ourselves unable to sustain the impugned orders. 14. The writ petition is accordingly allowed. The impugned orders dated 29 December 2022, 20 February 2024, as well as the order of the appellate authority dated 08 July 2024 are hereby quashed. 15. This order, however, shall be without pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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