Cancellation of GST Registration does not Absolve Petitioner from any Tax Liability: Delhi High Court while directing Reconsideration of Cancellation Application [Read Order]
Delhi High Court Directs reconsideration of GST Registration Cancellation Application
![Cancellation of GST Registration does not Absolve Petitioner from any Tax Liability: Delhi High Court while directing Reconsideration of Cancellation Application [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/07/GST-GST-Registration-Cancellation-of-GST-Registration-Delhi-High-Court-Goods-and-Services-Tax-taxscan.jpg "Cancellation of GST Registration does not Absolve Petitioner from any Tax Liability: Delhi High Court while directing Reconsideration of Cancellation Application [Read Order]")
In a recent decision, the Delhi High Court bench of Justice Vibhu Bakhru and Justice Sachin Datta, observed that cancellation of Goods and Services Tax registration of petitioner does not absolve him of the tax liabilities during operation period. The petitioner, represented by Mr. Pranay Jain and Mr. Karan Singh, sought directions for the cancellation of its Goods and Services Tax ( GST...
In a recent decision, the Delhi High Court bench of Justice Vibhu Bakhru and Justice Sachin Datta, observed that cancellation of Goods and Services Tax registration of petitioner does not absolve him of the tax liabilities during operation period.
The petitioner, represented by Mr. Pranay Jain and Mr. Karan Singh, sought directions for the cancellation of its Goods and Services Tax ( GST ) registration. The company, having ceased its business operations, applied for cancellation on January 16, 2024, citing full compliance with tax liabilities during its operational period.
The court noted that despite the petitioner's compliance, the GST authorities raised concerns regarding outstanding tax liabilities and procedural requirements, issuing a show cause notice on February 16, 2024.
The petitioner claimed to have responded but faced technical difficulties in accessing the response from the GST Portal.
It was noted that, “In the aforesaid circumstances, we consider it apposite to dispose of the
present petition by directing the respondent to consider the petitioner’s application for cancellation of the GST Registration, and pass an appropriate order.”
It was also clarified that, “the cancellation of the petitioner’s GST Registration would not absolve the petitioner from any tax liability or other statutory compliances for the period prior to cancellation.”
In its judgement, the Delhi High Court noted the circular stipulating a 30-day period for processing cancellation requests, except under specific circumstances.
It directed the respondent to consider and decide upon the cancellation application within four weeks, remarking that cancellation of Goods and Services Tax Registration does not absolve the petitioner from the past statutory obligations under GST Laws.
The Delhi High Court Division Bench also mentioned that the effective date of cancellation of the GST registration of the petitioner cannot precede the application date and should not affect prior tax liabilities.
To Read the full text of the Order CLICK HERE
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