1. The matter is taken up today as 09.03.2023 was declared a holiday.
CM APPL. 8110/2023 (for exemption)
2. Exemptions allowed, subject to all just exceptions.
3. The application stands disposed of.
4. The petitioner has filed the present petition, inter alia, praying as under:
(i) To issue appropriate writ/direction/order quashing the Impugned Order dated 25 September 2020 passed by the Respondent No. 1 wherein GSTIN of the Petitioner has been arbitrarily cancelled by the Respondent No. 1.
(ii) To issue appropriate writ/direction/order directing the Respondents not to cancel the registration of the Petitioner with a retrospective effect;
(iii) As the Petitioner’s revocation application has been pending the Petitioner herein prays before this Hon’ble Court issue appropriate writ/direction/order to the Respondent No. 1 to restore the GSTIN of the Petitioner and if need be cancelled from 11 January 2020 and without having any retrospective effect.
(iv) To grant such further and other reliefs as the nature and circumstances of the case may require.
5. The petitioner had filed an application seeking cancellation of his GST registration (GSTIN 07AABCO9787A1Z9) with effect from 31.12.2019.
6. In response to the petitioner’s application for cancellation of his registration, Respondent No. 1 issued a Notice dated 04.02.2020, calling upon the petitioner to submit a stock statement along with month-wise, inward/ outward supplies. Apparently, the petitioner did not respond to the said Notice.
7. On 21.02.2020, Respondent No. 1 passed an order, which reads as under:
“Order of Rejection of Application for Cancellation This has reference to your reply filed vide ARN AA0701200230073 dated 11/01/2020. The reply has been examined and the same has not been found to be satisfactory for the following reasons:
Therefore, your application is rejected in accordance with the provisions of the Act.”
8. Subsequently, on 15.09.2020, Respondent No. 1 issued another notice, proposing to cancel the petitioner’s registration for the following reasons:
“1 Issues any invoice or bill without supply of goods and/or services in violation of the provisions of this Act, or the rules made thereunder leading to wrongful availment or utilization of input tax credit or refund of tax.”
9. Thereafter, the respondents passed the impugned dated 25.09.2020, cancelling the petitioner’s registration with effect from 01.07.2017.
10. There is no cavil that the petitioner’s registration is required to be cancelled. The petitioner had applied for the same, stating its reason for seeking cancellation as – “discontinued its business/ closure of business”.
11. Although Respondent No. 1 had rejected the said application; it had proceeded to cancel the petitioner’s registration, albeit with retrospective effect from 01.07.2017.
12. After some arguments, Mr. Aggarwal, learned Counsel for the respondent submits that he has no objection if the petitioner’s GSTIN registration is directed to be cancelled with effect from 11.01.2020 as prayed for by the petitioner.
13. In view of the above, it is directed that the cancellation of the petitioner’s registration will take effect from 11.01.2020. It is further clarified that this order will not preclude the respondents from initiating any proceedings for recovery of any tax, interest or penalty as may be otherwise due from the petitioner, in accordance with law.
14. The petition is disposed of in the aforesaid terms.