Assessee’s Tax Liability for a Prior Period Could Not Be a Ground for Refusing Cancellation of GST Registration | HC

Case Details: Sanjay Sales India v. Principal Commissioner of Department of Trade and Taxes - [2024] 165 taxmann.com 350 (Delhi)

Judiciary and Counsel Details

• Vibhu Bakhru & Sachin Datta, JJ.
• Pranay Jain & Karan Singh, Advs. for the Petitioner.
• Udit Malik, ASC & Vishal Chanda, Adv. for the Respondent.

Facts of the Case

The petitioner was registered with the GST authorities and it discontinued his business. It filed application for cancellation of registration with effect from 13.06.2024. However, the Proper Officer issued a notice proposing to reject petitioner’s application stating that it was required to pay due tax and penalties. It filed writ petition against the rejection of application.

High Court Held

The Honorable High Court noted that the cancellation of GST registration would not impinge upon the liability of the petitioner to pay the outstanding tax and penalties, if any. The scrutiny as to petitioner’s tax liability for a prior period could not be a ground for refusing cancellation of GST registration. Therefore, it was held that the impugned notice was liable to be quashed and the department was directed to process application for cancellation of GST registration.