Home Case Index All Cases GST GST + HC GST - 2024 (1) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (1) TMI 435 - DELHI HIGH COURTCancellation of registration of the petitioner with retrospective effect - registration obtained by means of fraud, wilful misstatement or suppression of facts - vague SCN - Violation of principles of natural justice - HELD THAT:- Since it is held that the show cause notice and the order of cancellation are bereft of any details and are not sustainable, no purpose would be served in awaiting the outcome of the hearing on the application for revocation of cancellation. Since the very foundation of the proceedings i.e. show cause notice, is defective, further proceedings thereon shall be vitiated. 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 - a taxpayer’s registration can be cancelled with retrospective effect only where such consequences are intended and are warranted. The impugned show cause notice dated 10.07.2023 and the order of cancellation dated 25.08.2023 are set aside - Petition allowed.
|