GST Registration Cancellation Petition Requires Department to Process Application Within Six Weeks While Preserving Petitioner's Legal Rights

The HC reviewed a GST registration cancellation petition. The respondent acknowledged ongoing investigations into alleged fraudulent input tax credit claims. The court directed the Department to process the petitioner's cancellation application within six weeks and communicate a decision, while preserving the petitioner's right to pursue further legal remedies if unsatisfied with the outcome.

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Issues involved:
The petitioner seeks a direction for cancellation of its GST registration due to allegations of wrongful claim of input tax credit.

Judgment details:
The petition was taken up for final disposal with the consent of both parties. The respondent, through their counsel, mentioned allegations of wrongful claim of input tax credit by the petitioner from dealers whose registrations were cancelled for issuing input tax credit without underlying sales. The Department is examining this issue, and the application for cancellation of GST registration is under consideration. The respondent assured that a decision on the application would be communicated to the petitioner within six weeks. Consequently, the petition was disposed of, directing the respondents to process the application promptly and pass an appropriate order within six weeks. The petitioner was also informed of their right to seek further legal remedies if aggrieved by the decision.

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