Power of proper officer to cancel the registration from any date cannot be used arbitrarily
Power of proper officer to cancel the registration from any date cannot be used arbitrarily- Aditya Polymers-HC (DEL)-W.P.(C)-14493/2022
The Delhi High Court held that
The proper officer has the authority to cancel the registration as of any date, including any retrospective date as per Section-29(2) of the CGST Act but the same cannot be exercised arbitrarily.
“Ab initio” cancellation of registration should be based on strong grounds.
Additionally, the assessee needs to be informed that the registration will be cancelled retrospectively.
The cancellation would come into effect only from the date of show cause notice and not from the date of grant of registration.
The copy of the order is as under: