Voluntary GST registration cancellation cannot be refused solely for non-appearance or document gaps when returns were filed.

Rejection of a voluntary GST registration cancellation application cannot rest solely on non-appearance or non-submission of documents where the returns had already been filed. Any mismatch between GSTR-1 and GSTR-3B must be dealt with by processing the returns and, if necessary, by taking assessment action in accordance with law; it does not by itself justify refusal of cancellation. The rejection order was therefore quashed, the cancellation application was allowed, and the tax department was left free to initiate assessment proceedings if warranted.

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Issues: Whether the rejection of the application for voluntary cancellation of GST registration was sustainable when the returns had been filed and the rejection was based on non-appearance and non-submission of documents.

Analysis: The application for cancellation was rejected on the sole ground that the petitioner did not appear and did not submit documents/details. The respondents themselves conceded that returns had been filed. If there was any discrepancy in GSTR-1 and GSTR-3B, the proper course was to process the returns and, if warranted, undertake assessment proceedings. Such discrepancy could not by itself justify rejection of the cancellation request.

Conclusion: The rejection order was unsustainable and was quashed. The application for voluntary cancellation of GST registration was allowed, with liberty to the respondents to proceed with assessment in accordance with law.

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