GST registration cancellation cannot be stalled by possible recovery proceedings, though contact details for future notice may still be required.

Cancellation of GST registration cannot be kept pending merely because assessment, recovery, interest or penalty proceedings may be initiated or are contemplated. The authorities may still pursue lawful proceedings separately, so the existence of possible tax dues does not by itself justify withholding processing of a cancellation request where business has ceased. However, the taxpayer may be required to furnish a correct address and supporting documents for future correspondence and service of notice, because those details remain relevant if later proceedings arise. The cancellation application should therefore be processed expeditiously once the necessary correspondence particulars are supplied.

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Issues: Whether the petitioner's application for cancellation of GST registration could be withheld on the ground of pending assessment or recovery of tax, interest or penalty, and whether the petitioner was required to furnish documents for future correspondence before cancellation could be processed.

Analysis: The petitioner had ceased business and had sought cancellation of registration. The pending or potential assessment, recovery, interest or penalty proceedings did not justify keeping the cancellation application in abeyance, because cancellation of registration does not bar the authorities from initiating appropriate proceedings for recovery or for non-compliance with statutory obligations. At the same time, the authorities were entitled to obtain a correct address and supporting documents for future correspondence and service of notice, since such details would be relevant if recovery or other proceedings were initiated later.

Conclusion: The cancellation application could not be withheld on account of assessment or recovery matters, and the petitioner was required to furnish the necessary correspondence documents within one week; the Proper Officer was directed to process cancellation expeditiously thereafter.

Final Conclusion: The petition succeeded to the extent that the request for cancellation of GST registration was directed to be processed without being stalled by possible tax recovery issues, while preserving the authorities' ability to pursue lawful proceedings separately.

Ratio Decidendi: A request for cancellation of GST registration cannot be deferred merely because assessment or recovery proceedings may arise, though the taxpayer may still be required to supply essential contact details for future notice and correspondence.

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