TMI Blog2024 (1) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. 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 examin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have been mentioned in the Show Cause Notice. It appears that the Show Cause Notice extracts the reason in a standard format. 4. Further, the Show Cause Notice also does not mention the quantum of returns. The impugned order also does not state any reasons for cancellation of the GST registration retrospectively except to state that no reply to the show cause notice has been received. Both the show cause notices and the impugned order are bereft of any reasoning and particulars and are accordingly not sustainable. 5. The impugned order also seeks to cancel the registration with effect from 01.07.2017. There is no material on record to show as to why the registration is sought to be cancelled retrospectively. 6. Further, the Show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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. 9. In view of the above, the Show Cause Notice as well as the Impugned Order are set aside. 10. It would be, however, open to the respondent to take further action in accordance with law inter alia, cancellation of registration with retrospective effect. However, the same would be in accordance with law and pursuant to a proper Show Cause Notice and an opportunity of hearing being given to the petitioner. 11. Respondents are also not precluded from taking any steps for recovery of any tax, penalt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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