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TMI Blog2025 (3) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... iolation of section 29(2) of the CGST Act, 2017 and settled judicial precedents. b. Issue a Writ of Certiorari or a Writ of Mandamus and/or such other Writ, Order or Direction to set aside Order-In-Appeal No.397/ADC/Central Tax/Appeal-I/Delhi/2024 dated 04.10.2024 passed without considering the fact that the order of rejection of application for revocation of cancellation was issued without any opportunity of hearing in violation of mandate of the proviso to section 30 of the CGST Act, 2017 and principles of natural justice on the sole ground that the petitioner has not replied to show cause notice dated 26.04.2024 within the time specified in the notice. c. A Writ of Certiorari or a Writ of Mandamus and/or such other Writ, Order or direction to set aside Order of Rejection of Application for Revocation of Cancellation dated 14.05.2024 and the original Order for Cancellation of Registration dated 23.02.2024 along with the Show Cause Notice for cancellation of registration dated 02.02.2023 for being in violation of Section 29(2) of the Central Goods and Services Tax Act, 2017, arbitrary; non-speaking and contrary to settled judicial precedents." d. Pass any other and / or such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i & Anr. (W.P.C 8061/2024 dated 25 September 2024): "5. As is manifest from a reading of Section 29, clauses (a) to (e) of Section 29(2) constitute independent limbs on the basis of which a registration may warrant cancellation. While the provision does enable the respondents to cancel that registration with retrospective effect, the mere existence or conferral of that power would not justify a revocation of registration. The order under Section 29(2) must itself reflect the reasons which may have weighed upon the respondents to cancel registration with retrospective effect. Given the deleterious consequences which would ensue and accompany a retroactive cancellation makes it all the more vital that the order be reasoned and demonstrative of due application of mind. It is also necessary to observe that the mere existence of such a power would not in itself be sufficient to sustain its invocation. What we seek to emphasise is that the power to cancel retrospectively can neither be robotic nor routinely applied unless circumstances so warrant. When tested on the aforesaid precepts it becomes ex facie evident that the impugned order of cancellation cannot be sustained. 6. We note ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the registration. It, however, states that the registration is liable to be cancelled for the following reason "whereas no reply to notice to show cause has been submitted''. However, the said order in itself is contradictory, the order states "reference to your reply dated 16.04.2022 in response to the notice to show cause dated 07.04.2022" and the reason stated for cancellation is "whereas no reply to notice to show cause has been submitted''. The order further states that effective date of cancellation of registration is 01.07.2017 i.e. 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 13.07.2022 does not qualify as an order of cancellation of registration. 7. As per the petitioner, the said order reflected that the GST of the Petitioner stands cancelled from 01.07.2017 even though returns thereafter have been filed by the Petitioner. 8. We notice that the show cause notice as well as the impugned order of cancellation, are themselves vitiated on account of lack of reason and clarity. The appeal has been dismissed solely on the ground of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s an affidavit of undertaking that petitioner has not carried out any business or raised invoices or taken any Input Tax Credit after the registration was suspended with effect from 07.04.2022 i.e., the date of suspension of the registration. 14. Respondent would be at liberty to initiate appropriate proceedings in accordance with law after giving a proper show cause notice containing complete details, if so advised. Further this order would not preclude the respondent from initiating any steps in accordance with law, if it is found that the petitioner had violated any provisions of the Act. 15. Petition is disposed of in the above terms." 7. We further take note of the judgment in Delhi Polymers vs Commissioner, Trade and Taxes & Anr.5 wherein the following was observed:- "1. Petitioner has filed the appeal impugning order of cancellation of registration dated 15.12.2021 whereby the GST registration of the Petitioner has been cancelled retrospectively with effect from 01.07.2017. Petitioner also impugns Show Cause Notice dated 04.09.2021. 2. Vide Show Cause Notice dated 04.09.2021, petitioner was called upon to show cause as to why the registration be not cancelled for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances set out in the said sub-section are satisfied. 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 consider it apposite to examine this aspect but assuming that the respondent's contention in 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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