TMI Blog2024 (2) TMI 1122X X X X Extracts X X X X X X X X Extracts X X X X ..... nnot 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. It is important to note that, according to the respondent, one of the consequences for cancelling a taxpayer 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 taxpayer during su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Any Taxpayer other than composition taxpayer has not filed returns for a continuous period of six months 3. Petitioner is a Private Limited Company and has been engaged in business since 2014. Said company had been registered under the DVAT Act and thereafter possessed GST registration. 4. Show cause notice dated 11.02.2021 was issued to the petitioner seeking cancellation of GST registration. The notice does not specify any cogent reason, and merely states not filed returns for a continuous period of six months. 5. Further, the impugned order dated 19.04.2021 passed on the show cause notice dated 11.02.2021 does not give any reason for cancellation. It however, states that the registration is liable to be cancelled for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany had filed returns only till September 2019. 10. He further submitted that the petitioner company suffered major setbacks, due to which the entire management of the petitioner company was in a state of turmoil, and during March 2020 i.e., during the COVID -19 pandemic period petitioner was not able to make compliances in respect to GST returns. 11. As per the petitioner, they became aware of non-filing of returns only in January 2021 i.e. when the Accountant passed away. Learned counsel submitted that since the Login credentials were not available with the petitioner company they were unable to access and login the said GST portal. 12. We notice that the show cause notice and the impugned order are also bereft of any details ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notice and in the impugned order as to why the cancellation has been done retrospectively. 16. In view of the above the petition is allowed. The impugned show cause notice dated 11.02.2021 and order of cancellation dated 19.04.2021 are accordingly set aside. The GST registration of the petitioner is restored. Petitioner shall comply with Rule 23 of Central Goods and Service Tax Rules, 2017. Petitioner shall file all requisite returns and pay the tax, if any, within a period of 30 days from today. 17. It is clarified that respondents are also not precluded from taking any steps for recovery of any tax, penalty or interest that may be due from the petitioner in accordance with law. 18. Petition is disposed of in the above terms. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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