Section 29 of the CGST Act, 2017 --- Cancellation of Registration —- The petitioner challenged an order dated 27.12.2021, whereby the petitioner’s application for cancellation of its registration was rejected and challenged an order dated 24.08.2022, whereby the respondents had suo moto cancelled the petitioner’s registration. The court observed that the said order has been passed without application of mind and without disclosing any reason. The said order is also, ex-facie, erroneous. Since the petitioner’s business was closed and he had applied for cancellation of his GST registration, he did not file his GST returns for the subsequent period. There is no reason why the petitioner’s cancellation was effected with retrospective effect.

Held that:- The Hon’ble Court directed that cancellation of the petitioner’s registration with effect from 31.07.2021, will not preclude the respondents from taking any measure for recovery of tax, interest or penalty in accordance with law, if it is otherwise found due from the petitioner.