[dated 29.07.2024, in Somaprasanth Karampudi v. Union of India, from WP no. 14969 of 2024] The petitioner’s registration was cancelled on 21.02.2019. Thereafter, proceedings related to the impugned demand order commenced. Physical notices sent to the petitioner returned with the noting “Left”. Further, notices were also sent to the petitioner’s registered email address. The fact […]
[Order dated 08.07.2024 of the High Court of Delhi, in Shri Sai Metals v. Principal Commissioner of Goods and Service Tax, West Delhi, from W.P.(C) No. 9168 of 2024] According to section 29(3) of the CGST Act, cancellation of registration shall not affect the liability of the person to pay tax and other dues or […]
Registration cannot be cancelled with retrospective date covering the period when the returns were filed and the taxpayer was compliant. A consequence of cancelling registration with retrospective effect is that the taxpayer’s customers are denied the ITC availed in respect of the supplies made by the taxpayer during such period. Therefore, retrospective cancellation must be based on some objective criteria.
How can the cancellation proceedings be concluded if the registered person belatedly replies to the show-cause notice? What if the assessee altogether fails to reply to the show-cause notice? On purposive construction, it appears that if the registered person fails to reply within the stipulated time limit, the proper officer should conclude the cancellation proceedings within 30 days thereof.