M/S Perfect Trader vs. Principal Commissioner Of Department Of Trade And Taxes, Government Of Nct Of Delhi

Facts

The petitioner, M/s Perfect Trader, filed an application on October 3, 2023, to cancel its GST registration. A query was raised by the respondent on February 15, 2024, which the petitioner duly responded to. However, as of the date of the petition, the registration had neither been cancelled nor had the application been processed or rejected. The petitioner contended that the respondent authority had failed to adhere to the stipulated timelines for processing such applications.

Held

The Court acknowledged the petitioner's submission regarding the timelines prescribed under Rule 22(3) of the Central Goods and Service Tax Rules, 2017. However, the Court also referred to its own previous judgment in Fayiz Nangaparambil Vs. Union of India & Anr. (W.P. (C) 570/2024) delivered on March 5, 2024, which held that such timelines are to be construed reasonably and not strictly. Despite this, the Court directed the respondent to dispose of the petitioner's application for cancellation of GST registration within a period of two weeks from the date of the order. The Court also clarified that the petitioner would be at liberty to pursue further remedies if aggrieved by any subsequent order passed by the proper officer.

Key Issues

1. Whether the respondent authority has failed to adhere to the timelines prescribed under Rule 22(3) of the Central Goods and Service Tax Rules, 2017, for disposal of an application for cancellation of GST registration? The petitioner argued that Rule 22(3) mandates a strict timeline of 30 days for the disposal of GST registration cancellation applications, and the respondent's failure to act within this period constitutes a dereliction of duty. The petitioner relied on the said Rule. The respondent did not present any arguments on this issue.