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2024 (1) TMI 573 - DELHI HIGH COURTCancellation of GST registration with retrospective effect - HELD THAT:- 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, it is not considered 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. In view of the fact that petitioner does not seek to carry on business or continue the registration, the impugned order dated 04.04.2022 is modified to the limited extent that registration shall now be treated as cancelled with effect from 24.08.2021 i.e. date of demise of Sh. Surinder Singh. 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. Petition disposed off.
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