Guruji Enterprises Vs Principal Commissioner Delhi Goods And Services Tax & Ors. (Delhi High Court)
Delhi High Court held that cancellation of a tax payer’s GST registration does not absolve the tax payer from being held accountable for any statutory non-compliance or absolves it from any liability under the statute.
Facts- The petitioner claims that its business suffered on account of the outbreak of COVID-19 and the petitioner was constrained to close down its business with effect from 30.11.2020. Thereafter, on 08.02.2021, the petitioner filed an application for cancellation of its GST registration with effect from 30.11.2020 on account of the fact that it has closed down its business.
Respondent no. 3 issued the show cause notice dated 09.02.2021 seeking additional information/clarification/documents. The petitioner duly responded to the said notice and furnished certain documents. However, the petitioner’s application for cancellation of its GST registration was rejected by an order dated 20.02.2021.
Thereafter, the proper officer issued the impugned SCN and called upon the petitioner to show cause why its registration be not cancelled. The only reason stated in the impugned SCN was that the petitioner had failed to furnish returns for a continuous period of six months.
Conclusion- Held that cancellation of a tax payer’s GST registration does not absolve the tax payer from being held accountable for any statutory non-compliance or absolves it from any liability under the statute. The respondents are also not precluded from proceeding against the tax payer for the statutory non-compliance or payment of any dues notwithstanding it’s GST registration has been cancelled.
