Cancellation Application Must Be Processed Quickly | Pending Assessment Cannot Delay It

Case Details: Guru Enterprises v. Principal Commissioner of Department of Trade and Taxes - [2024] 167 taxmann.com 670 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Pranay Jain & Karan Singh, Advs. for the Petitioner.
• Avishkar Singhvi, ASC, Vivek Kumar Singh & Naved Ahmed, Advs. for the Respondent.

Facts of the Case

In the present case, the petitioner had filed an application seeking the cancellation of its GST registration due to business discontinuation. Pursuant to the said application, the proper officer issued a notice 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 had furnished the documents as required by the notice but no action was taken yet.

High Court Held

The High Court noted that the 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. Thus, the High Court directed the proper officer to process the petitioner’s application as expeditiously as possible.