Sanjay Sales India Vs Principal Commissioner of Department of Trade and Taxes (Delhi High Court)
In Sanjay Sales India Vs Principal Commissioner of Department of Trade and Taxes, the Delhi High Court ruled that prior tax liability cannot be a valid reason for rejecting a request to cancel GST registration. The petitioner, who had discontinued business and applied for GST cancellation on June 13, 2024, faced objections from the tax department, which demanded the payment of outstanding taxes and submission of financial details. The court found these grounds untenable, noting that the cancellation of GST registration does not absolve the petitioner of any pre-existing tax liabilities. The Proper Officer is still entitled to assess and recover outstanding dues post-cancellation. The court ordered the department to process the cancellation request but clarified that this does not prevent further proceedings to assess or recover the petitioner’s tax dues under applicable GST laws.
FULL TEXT OF THE JUDGMENT/ORDER OF DELHI HIGH COURT
1. Issue notice.
2. Learned counsel for the respondent accepts notice.
3. The petitioner has filed the present petition being aggrieved by the failure on the part of the respondent to process its application for cancellation of GST registration.
4. The petitioner was registered with the GST authorities with effect from 01.07.2017 and was assigned Goods and Services Tax Identification Number (GSTIN:07AARPS6150L1Z0).
