GST Registration Cancellation Petition Granted with Modification, Allowing Petitioner to Address Tax Liability Concerns

HC allowed petition for GST registration cancellation, modifying the order to be effective from the date of application. The court directed the petitioner to provide necessary details for potential tax liabilities while allowing respondents to pursue recovery measures as per legal provisions.

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Issues involved:
The issues involved in the judgment are cancellation of GST registration and failure to furnish GST returns.

Cancellation of GST registration:
The petitioner sought a direction to cancel their GST registration, as they had closed down their business. The respondent issued a notice requiring the petitioner to furnish returns, which the petitioner failed to do. A show cause notice was then issued for cancellation of the GST registration. The court allowed the petition and modified the cancellation order to be effective from the date the petitioner applied for cancellation, i.e., 23.02.2023.

Failure to furnish GST returns:
The petitioner's application for cancellation of registration was initially rejected due to non-submission of required documents. The petitioner claimed that the registration was suspended after the application, leading to the inability to file returns. The court directed the petitioner to provide all necessary details to the respondents for assessing any potential liabilities. It was clarified that the respondents could still take steps for recovery of tax, penalty, or interest as per the law.

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