GST Registration Cancellation does not Exempted petitioner From Tax Liability or Penalties: Delhi HC [Read Order]
The petitioner is not absolved of their obligation to pay tax, interest, or penalties, nor are they exempt from the consequences of statutory non-compliance, even after the cancellation of their GST registration.
![GST Registration Cancellation does not Exempted petitioner From Tax Liability or Penalties: Delhi HC [Read Order]](https://www.taxscan.in/wp-content/uploads/2024/10/Delhi-High-Court-GST-Tax-Liability-GST-Registration-cancellation-Taxscan.jpg "GST Registration Cancellation does not Exempted petitioner From Tax Liability or Penalties: Delhi HC [Read Order]")
In a significant ruling, the Delhi High Court held that the petitioner was not absolved of their obligation to pay tax, interest, or penalties, nor are they exempted from the consequences of statutory non- compliance, even after the cancellation of their Goods and Service Tax (GST) registration. The petitioner, Guru Enterprises, has filed a petition seeking a writ of mandamus or any...
In a significant ruling, the Delhi High Court held that the petitioner was not absolved of their obligation to pay tax, interest, or penalties, nor are they exempted from the consequences of statutory non- compliance, even after the cancellation of their Goods and Service Tax (GST) registration.
The petitioner, Guru Enterprises, has filed a petition seeking a writ of mandamus or any other appropriate order to cancel their Goods and Services Tax ( GST ) registration based on their application reference number AA070724005437A dated July 3, 2024. The petitioner requested this cancellation after discontinuing their business.
On July 3, 2024, the petitioner submitted an application to cancel their GST registration. In response, the proper officer issued a notice dated July 8, 2024, requesting additional information, including the residential address for future correspondence and a reconciliation statement regarding the declared tax liability for the financial year 2023-24. The petitioner claims to have provided all the necessary documents as requested in the notice.
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Given these circumstances, the court found it appropriate to direct the proper officer to process the petitioner’s application as expeditiously as possible.
Furthermore, the division bench, comprising Justice Vibhu Bakhru and Justice Sachin Datta, clarified that the cancellation of the petitioner’s GST registration should not be withheld due to any assessment of the petitioner’s liability. The court emphasized that the petitioner is not absolved of their obligation to pay tax, interest, or penalties, nor are they exempt from the consequences of statutory non-compliance, even after the cancellation of their GST registration.
The petition has been disposed of in these terms, and the pending application has also been resolved.
To Read the full text of the Order CLICK HERE
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