Appeal allowed, officer to decide registration cancellation date. Tax liability remains unchanged.

The appeal was allowed, and the proper officer was directed to consider the effective date of cancellation of registration from 17-12-2018. The appellant's liability to pay tax and other dues for any period before the cancellation date remains unaffected. The appeal was disposed of accordingly.

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Issues Involved:
1. Rejection of application for cancellation of GST registration.
2. Liability to file GST returns and pay taxes during the period of suspension.
3. Effective date of cancellation of GST registration.

Detailed Analysis:

1. Rejection of Application for Cancellation of GST Registration:
The appellant, Miss Vandana Sharma (M/s. Anita Mukund Enterprises), applied for cancellation of GST registration on 17-12-2018, citing that the firm's turnover did not cross the threshold limit. Despite submitting all necessary GST returns up to December 2018, the application was processed after two years and rejected due to "response not received." The appellant contended that they had responded to the notice issued by the department on 20-11-2019. The adjudicating authority failed to consider the appellant's contention and did not provide a proper explanation for the rejection.

2. Liability to File GST Returns and Pay Taxes During the Period of Suspension:
The appellant argued that once the cancellation application was filed, they could neither issue tax invoices nor file GST returns, as the registration was deemed suspended. The proper officer rejected the subsequent application for cancellation on 19-1-2021, stating that the taxpayer had not filed pending GST returns and had not paid taxes. However, the appellant maintained that filing returns during the suspension period was not feasible and would contradict their Income Tax Return. The adjudicating authority agreed that the appellant could not file returns or issue invoices during the suspension period, making the rejection order improper and incorrect.

3. Effective Date of Cancellation of GST Registration:
The appellant requested that the effective date of cancellation be considered from the date of the first application, i.e., 17-12-2018. The adjudicating authority noted that the application for cancellation was indeed submitted on 17-12-2018, and the registration was deemed suspended from that date. The proper officer was instructed to consider the effective date of cancellation from 17-12-2018, as per the appellant's initial application.

Conclusion:
The appeal was allowed, and the proper officer was ordered to consider the effective date of cancellation of registration from 17-12-2018. The appellant's liability to pay tax and other dues for any period prior to the date of cancellation remains unaffected. The appeal was disposed of accordingly.

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