2024 (8) TMI 573 - HC - GST

Cancellation of petitioner s Goods and Service Tax (GST) registration - petitioner ceased to carry on its business - HELD THAT - Since the petitioner claims that it has ceased to carry on its business, its application for cancellation of the GST registration is required to be processed. The same cannot be withheld. Insofar as the Proper Officer s query regarding address for future correspondence including Rent Agreement, ownership proof, KYC documents etc. is concerned, the petitioner is required to provide the same to the Proper Officer. If the Proper Officer seeks to initiate proceedings for recovery of tax and other dues, it is necessary that it has the correct address for service of notice and proceedings. However, insofar as further scrutiny of returns and proceedings for assessment of tax is concerned, no such proceedings have been initiated as yet. Admittedly, the cancellation of GST registration does not preclude the Adjudicating Authority from initiating the appropriate proceedings for recovery of dues as well as for non-compliance of any statutory provisions. Thus, the petitioner s request for cancellation of its registration cannot be held up on that ground. The petitioner s application for cancellation of its GST registration not be held up on account of assessment of tax, interest or penalty that may be recoverable from the petitioner. The petitioner is also directed to provide the necessary documents for future correspondence within a period of one week from date. Petition disposed off.

Summary

Issues:
1. Petitioner's prayer for cancellation of GST registration.
2. Proper Officer's rejection of the application for cancellation.
3. Suspension of GST registration due to failure to file returns.
4. Proper Officer's queries and requirements for cancellation.
5. Processing of the cancellation of GST registration.

Analysis:
1. The petitioner sought the cancellation of their Goods and Service Tax (GST) registration as they had ceased trading in polymers and propylene. The Proper Officer initially rejected the cancellation application and later suspended the GST registration due to non-filing of returns for six months.

2. Following the rejection and suspension, the petitioner filed 'Nil' returns to comply with statutory provisions. Subsequently, a new application for cancellation was submitted, prompting the Proper Officer to request documents confirming the address for future correspondence, returns, tax liability discharge, and reconciliation sheets for specific GST forms.

3. The court emphasized that the cancellation of GST registration should not be delayed, especially if the petitioner has ceased business operations. The Proper Officer's queries regarding address verification and document submission were deemed necessary for future proceedings but should not impede the cancellation process.

4. It was clarified that the cancellation of registration does not exempt the petitioner from potential tax recovery or statutory compliance actions. However, the court directed the Proper Officer to process the cancellation without delay, instructing the petitioner to provide the required documents promptly for further action.

5. In conclusion, the court disposed of the petition by directing the Proper Officer to proceed with the cancellation of the petitioner's GST registration expeditiously, ensuring that the necessary documents are submitted within a week for consideration. The judgment resolved the pending application in line with the provided directives.