Swaranjithlal C.S vs. The Assistant Commissioner Cto

Held

The Court held that the cancellation order was unsustainable as it violated the proviso to Rule 22(4) of the CGST Rules. This proviso mandates dropping cancellation proceedings if the assessee furnishes all pending returns and makes full payment of tax dues, interest, and late fees within the show cause notice period. The matter was remitted for a fresh decision based on this rule.

Facts

A GST-registered petrol pump dealer received a show cause notice for cancellation of his GST registration due to non-filing of returns under Section 39. The petitioner claimed to have filed all pending returns and paid tax and interest within the show cause notice period, but his registration was subsequently cancelled.

Key Issues

Whether GST registration can be cancelled if the assessee files all pending returns and pays tax, interest, and late fees within the time granted in the show cause notice, as per the proviso to Rule 22(4) of the CGST Rules.