2024 (7) TMI 364 - HC - GST

GST Registration Cancellation Application Must Be Processed Within Four Weeks by Proper Officer Under Prescribed Timelines

The HC directed the Proper Officer to process the petitioner's GST registration cancellation application within four weeks, noting the delay in addressing ... Cancellation of GST registration - closure of business - direction to administrative authority to decide pending application - expeditious disposal of statutory application - no adjudication on meritsCancellation of GST registration - closure of business - expeditious disposal of statutory application - no adjudication on merits - Petition for direction to respondent to cancel GST registration and to decide the pending cancellation application - HELD THAT: - The petitioner, who carried on trading in polymers, filed an application on 18.09.2022 seeking cancellation of its GST registration on the ground of closure of business. The department did not act on the application until issuance of a notice on 19.02.2024 querying the correctness of the date from which cancellation was sought; the petitioner responded, stating the date for cancellation as 18.09.2023. Observing the inaction on the pending application and the petitioner's response, the Court directed the Proper Officer to dispose of the application for cancellation expeditiously within four weeks. The Court expressly refrained from considering or commenting upon the merits of the contentions of either party and preserved all rights and contentions. [Paras 7, 8, 9]Proper Officer directed to dispose of the pending application for cancellation of GST registration expeditiously within four weeks; merits not considered and rights reserved.Final Conclusion: Writ petition disposed by directing the departmental officer to decide the petitioner's application for cancellation of GST registration within four weeks; the Court did not adjudicate the merits and preserved parties' rights. Issues:1. Petitioner seeks direction to cancel GST registration due to closure of business.Analysis:The petitioner, engaged in trading polymers, had a GST registration under the Central Goods and Services Act, 2017. The petitioner applied for cancellation of GST registration on 18.09.2022 citing the closure of business from the same date. However, no action was taken by the department until 19.02.2024, when a notice was issued stating that the application for cancellation was incorrect as the date mentioned was wrong. The petitioner responded, clarifying that the correct date for cancellation was 18.09.2023. Despite the response, no further action was taken by the department.The court, considering the petitioner's request for cancellation of GST registration from 18.09.2023, directed the Proper Officer to dispose of the application promptly within four weeks from the judgment date. It is important to note that the court did not delve into the merits of the arguments presented by either party, keeping all rights and contentions reserved. The petition was thus disposed of with the aforementioned direction for expeditious disposal of the cancellation application, providing relief to the petitioner seeking closure of business and cancellation of GST registration.