Delhi HC directs revenue to Expedite Order on GST Registration cancellation Application

Shiv Enterprises Vs Principal Commissioner of Department of Trade And Taxes (Delhi High Court)

Introduction: The Delhi High Court recently issued a crucial directive in the matter of Shiv Enterprises vs Principal Commissioner of Department of Trade And Taxes. The petitioner sought a direction to expedite the processing of its application for the cancellation of GST registration.

Detailed Analysis: The petitioner, Shiv Enterprises, approached the court seeking a directive to the respondent, the Principal Commissioner of the Department of Trade and Taxes, to allow the cancellation of its GST registration. The respondent, represented by learned counsel, acknowledged the petition and assured the court that the delay was due to ongoing examinations of allegations related to the wrongful claim of input tax credit by the petitioner.

The respondent explained that the Department was investigating claims involving dealers whose registrations were canceled on the grounds of issuing input tax credit without underlying sales of goods and services. While the application for cancellation was still under consideration, the respondent committed to expeditiously deciding and communicating the decision to the petitioner within six weeks.

The Delhi High Court, with the consent of both parties, disposed of the petition. The court directed the respondents to process the cancellation application promptly and pass an appropriate order within the stipulated six weeks. The order clarified that the petitioner retained the right to pursue further legal remedies if aggrieved by the decision.

Conclusion: This development in the Shiv Enterprises vs Principal Commissioner case underscores the Delhi High Court’s commitment to expeditious resolution of matters related to GST registration cancellation. The court’s directive ensures a timely decision on the petitioner’s application, striking a balance between procedural diligence and swift resolution. This case serves as a reminder of the importance of procedural efficiency and adherence to legal timelines in GST proceedings.

FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT

1. Petitioner seeks a direction to the respondent to allow the application of the petitioner seeking cancellation of its GST registration.

2. Issue notice. Notice is accepted by learned counsel appearing for the respondent.

3. With the consent of the parties, petition is taken up today for final disposal.

4. Learned counsel for the respondent submits that there are allegations of wrongful claim of input tax credit by the petitioner from the dealers whose registrations have been cancelled on the ground of issuance of input tax credit without underlying sales of goods and services. He submits that the Department is examining the said issue and as such the application has not yet been accepted and is under consideration. He assures that a decision on the application shall be taken and communicated to the petitioner expeditiously within a period of six weeks from today.

5. In view of the above, this petition is disposed of. Respondents are directed to process the application expeditiously and pass appropriate order on the same in accordance with law within a period of six weeks from today.

6. It is clarified that it would be open to the petitioner to avail of any further remedy in law as may be required in case the petitioner is aggrieved by any order passed by the respondents.

7. The petition is disposed of in the above terms.