GST Registration Cancellation: Delhi HC Ruling

Quick Summary

The Delhi High Court has ruled that an application to cancel GST registration cannot be rejected simply because there are ongoing scrutiny proceedings for past tax liabilities. The court stated that cancelling registration does not absolve a business of its duty to pay outstanding taxes or penalties from the period before cancellation. Therefore, such scrutiny should not prevent the cancellation process from moving forward.

Court :
Delhi High Court

Brief :
The Hon'ble Delhi High Court in the case of M/s Sanjay Sales India v. Principal Commissioner of Department of Trade and Taxes, Government of NCT, Delhi [Writ Petition (Civil) No. 10234 of 2024 dated July 26, 2024] held that the application for the cancellation of the GST registration cannot be denied on the ground that the scrutiny proceeding has been raised relating to tax liability of the Assessee of the past period.

Citation :
Writ Petition (Civil) No. 10234 of 2024 dated July 26, 2024

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