TMI Blog2024 (3) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... asons for retrospective cancellation. In terms of Section 29(2) of the Act, 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. 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. 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 suppli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w Cause Notice dated 18.02.2021. 2. Vide Show Cause Notice dated 18.02.2021, petitioner was called upon to show cause as to why the registration be not cancelled for the following reason:- Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax. 3. Petitioner is a proprietorship firm and is engaged in trading and retailing of paper board and woven fabric products and possessed GST registration. 4. Show Cause Notice dated 18.02.2021 was issued to the petitioner. Though the notice does not specify any cogent reason, it merely states Issues any invoice or bill without supply of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase specify) - This GSTIN is neither Aadhaar Authenticated nor e-KYC verified. PLEASE UPDATE ALL KYC NORMS. 8. As per the petitioner, he filed a detailed reply dated 25.02.2021 to the impugned Show Cause Notice dated 18.02.2021, however, the same was not considered by the Proper Officer while passing the impugned order dated 27.02.2021. 9. As per the petitioner, the revocation application dated 08.03.2021 is still pending, however, Petitioner is now no longer interested in continuing the business and has closed down his business activities. 10. We notice that the Show Cause Notice and the impugned order are also bereft of any details accordingly the same cannot be sustained and neither the Show Cause Notice, nor the order spell out the reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... want cancellation of the GST registration of the Petitioner, though for different reasons. 14. In view of the fact that Petitioner does not seek to carry on business or continue the registration, the impugned order dated 27.02.2021 is modified to the limited extent that registration shall now be treated as cancelled with effect from 18.02.2021 i.e., the date when the Show Cause Notice was issued. Petitioner shall make the necessary compliances as required by Section 29 of the Central Goods and Services Tax Act, 2017. 15. 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 in respect of the subject firm in accordance with law including retrospective cancel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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