Physical Verification of Business Premises in Absence of Assessee--Validity of Cancellation of Registration
CA. Satyadev Purohit
The learned author seeks to analyse an issue as to whether cancellation of registration on the basis of physical verification carried in absence of the taxpayer, is sustainable in law. The discussion is based on the relevant statutory provisions and a recent Delhi High Court decision in the case of Curil Tradex Pvt. Ltd. v. The Commissioner, Delhi Goods and Services Tax & Anr., decided on 26-8-2022 : 2022 TaxPub(GST) 1437 (Del-HC).
1. Provisions in respect of cancellation of registration
In terms of sub-section (1) of section 29 of the Central Goods and Services Tax Act, 2017 (in short "the CGST Act"), the proper officer may, either on his own motion or on an application filed by the registered taxable person or by his legal heirs (in case of death of such person), cancel the registration having regard to the circumstances where,--
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business; or
(c) the taxable person is no longer liable to be registered under section 22 or section 24 or intends to opt out of the registration voluntarily made under sub-section (3) of section 25.
Sub-section (2) of section 29 of the CGST Act, dealing with suo motu cancellation of the GST registration provides that the proper office may cancel the registration of taxable person from such date, including any anterior date, as he may deem fit, where,--
(a) the registered taxable person has contravened such provisions of the Act or the rules made thereunder as may be prescribed (refer to item 3 infra); or