Retrospective Cancellation: The Officer's Most Dangerous Weapon

?? Retrospective Cancellation: The Officer's Most Dangerous Weapon! ??

The misuse of Section 29 is an open secret. ??

Let's dive into what the Courts say about this critical issue! ????

Research by your own: Abhishek Raja Ram, 9810638155

Don't forget to bookmark/save this post as you can use these case laws to challenge mechanically done retrospective cancellation.

1. Assesee failed to furnish returns for a continuous period of six months. HELD: The power to cancel registration with retrospective effect cannot be exercised routinely or mechanically. The order must reflect the reasons that were weighed upon by the authorities to cancel the registration retrospectively.

The mere existence of the power to cancel registration retrospectively does not justify its invocation, and the order must demonstrate the due application of mind.

M/s Akash Garments - Delhi High Court

2024-VIL-1251-DEL

2. Power to cancel registration with retrospective effect can neither be robotic nor routinely applied; order must reflect reasons which may have weighed upon authority to cancel registration with retrospective effect.

Riddhi Siddhi Enterprises - Delhi High Court

(2024) 90 GSTL 257 (Del)

3. When GST registration was cancelled retroactively because the assessee's address wasn't found, but they provided an electricity bill as proof and weren't given a hearing date, the cancellation should be effective from the date of the show cause notice.

HRC International - Delhi High Court

(2024) 23 CENTAX 109 (Del)

4. Cancellation of GST registration retroactively without giving the assessee a chance to respond is improper; the officer must consider their response and offer a personal hearing before deciding.

Singhal Singh Rawat - Delhi High Court

(2024) 23 CENTAX 260

5. Where impugned order cancelling registration of assessee retrospectively was passed without giving any cogent reason and without providing any hearing opportunity to assessee, same was to be set aside for being in violation of principles of natural justice.

Chauhan Construction Co. - Delhi High Court

(2024) 22 CENTAX 548 (Del)

6. Cancellation of GST registration with retrospective effect requires specific reasons; arbitrary retrospective cancellation without grounds is not sustainable.

Ultra Industries - Delhi High Court

(2024) 23 CENTAX 147 (Del)

Friends,

I hope these cases assist you in drafting your replies and challenging retrospective cancellations.

Thanks & Regards

Abhishek Raja Ram

9810638155