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2022 (2) TMI 401 - HC - GSTCancellation of GSTIN of petitioner, with effect from the date of registration of GSTIN - Petitioner sought the cancellation of his GSTIN on account of his inability to continue his business, while Respondent no.1 cancelled the GSTIN of the petitioner on suo-moto basis under Section 29(2) of the Act from the date of registration of GSTIN of the Petitioner i.e. 1st July, 2017 - HELD THAT - It is apparent that the Petitioner s registration has been cancelled at the request of the petitioner and the Appellate Authority has categorically held that the Petitioner was entitled to discontinue its business. Further, the date of cancellation of registration is from the date the petitioner had applied for cancellation of his registration i.e. 4th March, 2020 and not from the date when its registration was cancelled by the respondent No.1. The Appellate Authority has passed a clear and cogent order dated 5th April, 2021 where it was held that impugned order of rejection of application for revocation of cancellation of registration dated 24.11.2020 and order for cancellation of registration dated 15.09.2020 are set aside -This Court is of the view that the reliance of the respondents on the order dated 5th August, 2020 is misconceived. The Respondent No.1 is directed to comply with the order dated 5th April, 2021 by allowing the petitioner to surrender his GSTIN voluntarily w.e.f. 4th March, 2020 - Petition allowed.
Issues:
1. Compliance with the order dated 5th April, 2021 for GSTIN cancellation. 2. Arbitrary cancellation of GSTIN by Respondent No.1. 3. Appeal against the rejection of cancellation application. 4. Discontinuation of business at the petitioner's volition. Detailed Analysis: 1. The petitioner filed a writ petition seeking compliance with the order dated 5th April, 2021, directing Respondent No.1 to allow voluntary surrender of GSTIN from 4th March, 2020. The petitioner's GSTIN was cancelled arbitrarily by Respondent No.1 despite the order from Respondent No.2 to cancel it from the date of application for cancellation. 2. The petitioner's counsel argued that the GSTIN cancellation was requested due to deteriorating health for discontinuation of business. Respondent No.1 canceled the GSTIN suo-moto under Section 29(2) from the registration date, not considering the genuine request. Respondent No.2 set aside this cancellation and directed cancellation from the application date. 3. The petitioner appealed the initial cancellation, and Respondent No.2's order on 5th April, 2021, allowed the appeal, revoking the cancellation and directing cancellation from the application date. Respondent's counsel mentioned that no appeal was filed against the rejection of cancellation on 5th August, 2020. 4. The Appellate Authority's order clearly stated the taxpayer's right to discontinue business voluntarily. The order directed immediate cancellation of registration from the application date, emphasizing compliance by the proper officer. The High Court found the Appellate Authority's order conclusive, allowing the writ petition and directing Respondent No.1 to comply with the cancellation order from 5th April, 2021.
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