2021 (7) TMI 466

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....d Kothari, learned counsel for the petitioner, stated that a search was conducted on petitioner's premises on 03.02.2021, in furtherance whereof, respondent No.4 issued a notice dated 04.02.2021, proposing to cancel petitioner's registration certificate. 3. Simultaneous with the notice proposing to cancel the registration, the respondent No.4, with the same stroke of pen, kept his registration certificate under suspension with immediate effect. 4. Learned counsel for the petitioner, submitted that pursuant to the notice of cancellation of registration dated 04.02.2021, petitioner has furnished his detailed reply/ response on 20.03.2021, yet the respondents have not passed any final order regarding petitioner's registration, due to whi....

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....d of 7 days, has failed to file reply within the stipulated time and the same came to be filed as late as on 20.03.2021. Hence, the petitioner cannot raise a grievance and level allegation of protraction of the proceedings by the respondent Assessing Authority. 9. Heard. 10. Sub-rule (3) of Rule 22 reads thus:- "22.- Cancellation of registration (1) XXX XXX (2) XXX XXX (3) Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may....

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....he reply. Suspension of a registration of an assessee has its own consequences - it brings the entire business of an assessee to a stand still. In a way it is worse than cancellation. Against cancellation, an assessee can take legal remedies but against suspension pending an enquiry, even if the assessee chooses to take remedies, the authorities or the Court(s) would normally show reluctance. 14. In the opinion of this Court, the proceedings of cancellation of registration cannot be kept hanging fire on any pretext, including that assessee failed to file reply within the time allowed. Authority issuing the notice is statutorily bound to pass order in terms of sub-rule (3) of Rule 22 of the Rules. 15. Having regard to the facts and cir....