TMI Blog2024 (4) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 tax payer during such period. Although, it is not considered apposite to examine this aspect but assuming that the respondent s contention is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent. With the consent of parties, petition is taken up for final disposal today. 3. Petitioner was engaged in the business of trading raisins and possessed GST Registration under the Central Goods and Services Tax Act, 2017 (hereinafter referred to as the Act). 4. Petitioner submitted an application dated 20.06.2020 seeking cancellation of the GST Registration on the ground of closure of business. 5. Pursuant to the said application, Notice dated 31.03.2021 was issued to the petitioner seeking additional information and documents relating to the application for cancellation of registration. Petitioner replied to the said notice on 07.04.2021. However, the application seeking cancellation of registration was rejected vide order dated 25 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een submitted . The order further states that effective date of cancellation of registration is 01.07.2017 i.e., a retrospective date. There is no material on record to show as to why the registration is sought to be cancelled retrospectively. 9. It may be noted that on one hand, the order states that the registration is liable to be cancelled and on the other, in the column at the bottom there are no dues stated to be due against the petitioner and the table shows nil demand. 10. As per the petitioner, all returns have been filed till 31.03.2020, i.e., till the business was functional. No returns have been filed post March 2020 due to closure of business. 11. Learned counsel for petitioner submits that the petitioner is no longer intereste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t s contention is 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. 15. It is clear that both the petitioner and the respondent want the GST registration to be cancelled, though for different reasons. 16. In view of the above that the Petitioner does not seek to carry on business or continue the registration, the impugned order dated 28.10.2021 is modified to the limited extent that registration shall now be treated as cancelled with effect from 20.06.2020 i.e., the date when petitioner filed an application seeking cancellation of GS ..... X X X X Extracts X X X X X X X X Extracts X X X X
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