Section 29 of the CGST Act, 2017--- Cancellation of Registration - The petitioner challenged the order-in-appeal dated 09.09.2022, vide which the appeal preferred against the order cancelling its GST Registration was dismissed on the ground that it was time-barred. The counsel of the petitioner submitted that prior to the issuance of order dated 28.12.2021, the petitioner was in default for only five months and not six months, as is the requirement under Section 29(2)(c) of the Act. The court observed that in the SCN, what is sought to be projected as reasons are hardly reasons, as these are mere statements of fact. The SCN dated 01.10.2021 appears to give the petitioner 30 days, commencing from the date of service of the notice, to submit a reply, whereas the petitioner was asked to appear before the concerned officer on 05.10.2021. The order dated 28.12.2021, appears to have been passed without due application of mind and is a cut and paste job. The order of cancellation is made effective retrospectively i.e., from 11.07.2017, whereas, the aforementioned SCN contains no such proposal. Therefore, the order cancelling the registration is beyond what was proposed in the SCN. Therefore, ordinarily, orders cancelling registration do not serve the purpose of the Act, which is, to collect as much legit revenue as is possible.

Held that:- The Hon’ble High Court directed the respondent counsel to return with instructions as to whether the order cancelling the registration could be recalled on terms and conditions deemed fit by the respondents/revenue. Listed the matter on 05.12.2022.