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2023 (12) TMI 831 - DELHI HIGH COURTCancellation of petitioner's GST registration with retrospective effect from 01.07.2017 - non-filing of returns for a continuous period of six months - vague impugned order - violation of principles of natural justice - HELD THAT:- The impugned order is not sustainable as it is not informed by reason. The impugned order has also been passed in violation of the principles of natural justice as the petitioner was not afforded any opportunity of being heard. Although, the SCN called upon the petitioner to appear for personal hearing, it did not specify the date, time or venue of the personal hearing. Thus, there was no possibility for the petitioner to appear at the hearing. It is also important to note that the impugned order cancelled the petitioner’s GST registration with retrospective effect from 01.07.2017. In terms of Section 29(2) of the Central Goods and Services Tax Act, 2017, the proper officer has a discretion to cancel the registration from any date including with retrospective effect, however, the said discretion cannot be exercised in arbitrary manner. The decision to cancel the registration with retrospective effect must be based on some objective criteria. In the present case, the petitioner’s GST registration was cancelled on account of non-filing of returns for a period of six months. There are no reason for cancellation of the petitioner’s GST registration even for a period when she was filing the returns. The impugned order does not provide any reason for cancellation of the GST registration let alone reason for doing so with retrospective effect - the impugned order is required to be set aside - Petition disposed off.
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