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Guru Enterprises Vs Principal Commissioner of Department of Trade And Taxes

Date: September 18, 2024

Court: High Court

Bench: Delhi

Type: Writ Petition

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Subject Matter

Cancellation of registration should not be delayed due to any assessment of the petitioner’s tax liability

Summary

The petitioner, having discontinued their business, filed an application on July 3, 2024, requesting the cancellation of their Goods and Services Tax (GST) registration. Following the application, the proper officer issued a notice on July 8, 2024, asking for additional information, including the taxpayer's residential address and a reconciliation statement for the declared tax liabilities for the financial year 2023-24. The petitioner claims to have provided the requested documents. The case law indicates the court's direction for the proper officer to process the petitioner's application for cancellation of GST registration as quickly as possible. It is made clear that the cancellation of registration should not be delayed due to any assessment of the petitioner’s tax liability since the cancellation does not exempt the petitioner from tax, interest, or penalties that may apply due to previous compliance issues. Ultimately, the petition was disposed of, along with any pending applications associated with it.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. Issue notice.

2. The learned counsel for the respondent accepts notice.

3. The petitioner has filed the present petition, inter alia, praying as under:-

“a) issue a writ of mandamus or any other appropriate writ or direction to cancel the GST registration of the petitioner on the request of the petitioner by applying an application reference number AA070724005437A dated 03.07.2024;”

4. The petitioner had filed an application dated 03.07.2024 seeking cancellation of its Goods and Services Tax (GST) registration as the petitioner had discontinued its business. Pursuant to the said application, the proper officer issued a notice dated 08.07.2024 seeking additional information including the residential address for future correspondence and the reconciliation statement regarding the declared tax liability for the financial year 2023-24. The petitioner claims that he had furnished the documents as required by the notice dated 08.07.2024.

5. In the given circumstances, we consider it apposite to direct the proper officer to process the petitioner’s application as expeditiously as possible.

6. It is also clarified that cancellation of the petitioner’s GST registration is not required to be withheld on account of any assessment of the petitioner’s liability. This is because the petitioner is neither absolved of its liability to pay tax, interest or penalty nor of the consequences of statutory non-compliance, on account of cancellation of the petitioner’s GST registration.

7. The petition stands disposed of in the aforesaid terms. Pending application also stands disposed of.