High Court Rejects GST Cancellation Without Clear Justification

• The petitioner challenges an order dated 9-8-2021 that canceled their GST registration with retrospective effect.

• The petitioner received a Show Cause Notice (SCN) on 9-7-2021, proposing registration cancellation due to invoicing issues.

• The petitioner had to respond within seven working days but was not given a specific date and time. Their registration was suspended from 9-7-2021.

• The petitioner claims they didn't respond to the SCN because they had closed their business.

• GST registration was canceled with retrospective effect from 1-7-2017, with no specified payable amount.

• The petitioner closed their business in April 2021 due to the pandemic.

• The company's director instructed the accountant to inform GST authorities of the business closure, but this information was not submitted. The business operated from 1-4-2015 until March 2021.

• The petitioner agrees with registration cancellation but objects to it being retrospective. The SCN mentioned invoicing issues but lacked specifics about offending invoices or the amount involved.

• The impugned order does not provide any reason for cancellation other than the absence of a response to the SCN.

• The SCN lacks details, and the impugned order is unreasonable.

• The SCN and impugned order are set aside to the extent that they cancel GST registration retrospectively. The cancellation will be effective from April 2021 because the SCN did not mention retrospective cancellation, denying the petitioner an opportunity to object.

• If the authorities wish to pursue retrospective cancellation, they must issue a proper SCN and make a decision after allowing the petitioner to be heard.

• The authorities can take steps to recover any outstanding taxes, penalties, or interest from the petitioner.

• The petition is disposed of in line with the above terms. Infinity Infomatic (P.) Ltd. Vs. Commissioner.