Taxpayer Wins GST Registration Cancellation Appeal, HC Orders Reconsideration and Corrects Administrative Error Under Section 29

GST registration cancellation dispute resolved by HC. Court found no substantive grounds for respondent's doubts about petitioner's cancellation application. HC set aside original cancellation order from 01.02.2018, directing respondent to reconsider application specifying correct cancellation date as 01.02.2019. Ordered respondent to process application within two weeks, effectively granting petitioner's relief and rectifying administrative error.

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Issues:
1. Rectification of GST registration cancellation order.
2. Apparent error in application for cancellation of registration.
3. Delay in rectification request.
4. Existence of customer firm Om Enterprises.
5. Allegation of non-existence of Om Enterprises.
6. Verification of Om Enterprises' GSTN number.
7. Merit in petitioner's request for cancellation of registration.
8. Setting aside the cancellation order and reconsideration.

Analysis:
1. The petitioner sought rectification of the order cancelling its GST registration with effect from 01.02.2018, which was an apparent error as it intended to cancel it from 01.02.2019. The second application for cancellation was accepted, but the respondent did not rectify the error, leading to the petition.

2. The respondent argued that the petitioner's conduct raised doubts, citing the closure of business reason in the first application. The belated rectification request was also highlighted. The respondent questioned the existence of Om Enterprises, a customer who reminded the petitioner of the error.

3. The petitioner clarified the error in Om Enterprises' GSTN number and provided evidence of its active status. The court found no merit in the respondent's doubts and concluded that the petitioner intended to cancel the registration from 01.02.2019, considering the returns filed until January 2019.

4. Despite the lack of grounds for doubt, the court set aside the cancellation order and directed the respondent to reconsider the application for cancellation dated 11.02.2019, specifying the correct date of cancellation as 01.02.2019 instead of 01.02.2018. The concerned officer was instructed to process the application within two weeks.

5. Ultimately, the petition was allowed in the terms mentioned, and the pending application was disposed of, providing relief to the petitioner and rectifying the error in the cancellation order.

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