Prem Kumar Pugalia Vs Commissioner of CGST (Delhi High Court)
In the case of Prem Kumar Pugalia vs Commissioner of CGST, the petitioner challenged the rejection of his voluntary GST cancellation application. The petitioner had filed for cancellation on January 30, 2021, and claimed that all tax returns up to that date had been duly submitted. However, the tax authorities issued a notice on April 27, 2021, requiring additional documents, including a reconciliation statement for tax paid in GSTR-1 and GSTR-3B. The application was later rejected on May 31, 2024, solely on the ground that the petitioner failed to appear or submit the required reconciliation details.
The Delhi High Court observed that the petitioner had already filed tax returns, a fact conceded by the respondents. It held that if there were discrepancies in the reconciliation process, the authorities had the option to process the returns and conduct an assessment, rather than outright rejecting the cancellation request. The court quashed the impugned order and allowed the voluntary cancellation of GST registration, permitting the department to proceed with assessment if necessary. All rights and contentions of the parties were kept open for future proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
