Delhi HC Directs Authority to Cancel GSTIN from Application Date, Submit Necessary Documents

The Delhi High Court in a judgment addressed the petition of Krishan Traders asking for the GST registration cancellation, marking the case for GST compliance and legal procedure field in India.

The case, Krishan Traders Vs Principal Commissioner of Goods And Service Tax North Delhi delves into the difficulties of GST deregistration procedures and the legal liabilities of the applicant under the Central Goods and Services Tax Act, 2017.

Detailed Examination

On 23.02.2023, the applicant Krishan Traders, filed an application asking for the GST registration cancellation because of the closure of their business. The same application set in motion of series of legal processes and responses via the Goods and Services Tax department, taking it toward the legal battle in the Delhi High Court.

The Commissionerate of West Delhi, instead of North Delhi, was recognized as the related authority, directing the modification in the memo of parties. The court, considering the mutual approval of the parties involved, decided to expedite the case for final disposal.

The records disclose that Krishan Traders had given an application for cancellation in advance of any notice from the GST department. The department’s notice on 04.12.2023 seeks the submission of diverse documents, accompanying possession documents, and ID proofs, for processing the cancellation.

The loss of the applicant to follow with such demands or to appear for scheduled hearing consequences in the cancellation request rejection.

For not filing GST returns a Show Cause Notice was issued against Krishan Traders through the suspension of their registration complying with the initial cancellation request. The same suspension restricted the applicant from completing the return filing needs.

The Delhi High Court on verifying the case has identified the strange case in which both the applicant as well as the GST Commissionerate were in favour of canceling the enrollment, albeit for distinct causes.

The court ruled in favor of editing the order of cancelation to show the real date of the applicant’s plea (23.02.2023) and rendered the Krishan Traders to introduce all essential documents to ease the finalization of the cancellation procedure.

Closure

As per the ruling the legal and procedural nuances of GST deregistration, show the cruciality of timely compliance with the legal needs and the role of judicial monitoring in solving the issues.

It shows that the assessees have the authority to ask for the cancellation of the GST registration, they should ensure that all the requisite data and documents are furnished for the council to enable an easier and legal consequence of the procedure.

The decision shows the pragmatic approach of the court in aligning the cancellation order with the applicant’s original request, thereby confirming justice and justice in the proceedings of the administration.