2024 (7) TMI 913 - HC - GST

Cancellation of the petitioner s GST Registration - petitioner closed down its business - HELD THAT - It appears from the notice that the Proper Officer is seeking to ascertain the petitioner s tax liability, if any. However, the petitioner s request for cancellation of the GST Registration is not contingent on its liability to pay tax. The learned counsel for the petitioner also refers to a circular dated 26.10.2018 which, inter alia, specifies that the application for cancellation of GST Registration ought to be decided within a period of 30 days, except in certain exceptional circumstances. It is considered apposite to dispose of the present petition by directing the respondent to consider the petitioner s application for cancellation of the GST Registration, and pass an appropriate order - petition allowed.

Summary

Issues:
Cancellation of GST Registration

Analysis:
The petitioner sought directions for the cancellation of its GST Registration. The petitioner claimed to have fulfilled its tax obligations and applied for cancellation upon closing its business. The proper officer issued a show cause notice expressing dissatisfaction with the application due to reconciliation and filing requirements. The petitioner responded but faced technical difficulties in submitting the reply. The petitioner argued that the cancellation request was not dependent on tax liability, citing a relevant circular specifying a 30-day decision period for cancellation applications, except in specific circumstances.

The court noted that the proper officer's focus on tax liability did not align with the cancellation request's nature. Referring to the circular, the court highlighted that cancellation does not affect prior liabilities and should be processed promptly unless specific conditions are unmet. Consequently, the court directed the respondent to evaluate the cancellation application and issue an appropriate order within four weeks. Importantly, the court emphasized that cancellation would not exempt the petitioner from past tax responsibilities or regulatory obligations.

In conclusion, the court granted the petition, instructing the respondent to review and decide on the cancellation request promptly while underscoring the petitioner's continued liability for pre-cancellation obligations.