GST Registration Cancellation Upheld: Taxpayer Required to Submit Updated Documents Despite Ongoing Proceedings Under Section 29

GST registration cancellation petition resolved by SC. Petitioner applied for cancellation due to business closure, submitted required documents. Court directed respondent to review application without withholding due to ongoing proceedings. Emphasized that registration cancellation does not exempt taxpayer from prior statutory violations. Petition disposed with instructions for updated contact and KYC documents.

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Issues:
1. Application for cancellation of GST registration.
2. Compliance with notice seeking information.
3. Consideration of cancellation application.
4. Effect of cancellation on statutory violations.
5. Circular on acceptance of cancellation applications.

Analysis:
The petitioner filed a petition requesting the respondent to cancel its GST registration effective from a specific date. The petitioner had been registered under the CGST Act and DGST Act and applied for cancellation due to business closure. The respondent issued a notice seeking clarification and documents related to the cancellation application, including financial statements, GST returns, and identity proofs. The petitioner responded with the required documents before the deadline. The court highlighted that cancellation of registration does not exempt the taxpayer from prior statutory violations and mentioned the possibility of retrospective cancellation under Sections 29 of the Acts. The respondent's counsel noted that action might be warranted if a taxpayer is found to be non-existent.

Additionally, a circular by the Central Board of Indirect Taxes and Customs clarified that cancellation of registration does not affect a taxpayer's liability for past or future actions. The circular outlined conditions for immediate acceptance of cancellation applications, emphasizing that cancellation should not be delayed due to assessment or recovery proceedings. In light of these considerations, the court directed the respondent to review the petitioner's cancellation application without withholding it due to ongoing proceedings. The court also instructed the petitioner to provide updated contact information and KYC documents for future correspondence. The petition was disposed of based on the aforementioned directions, and any pending applications were also resolved accordingly.

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