3.1 Overview

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SUSPENSION OF REGISTRATION

Para 2.8

the interpretation and not about any material fact that is not available for completing self-assessment. While provisional assessment is not optional for Proper Officer but for taxpayer, Proper Officer is not barred from rejecting if the application is not support by good and sufficient reasons to allow the same as per law. After all, following questions involve application of mind to reach a finding on facts based on the law: (a) maintainability - whether at all, the missing information as claimed by taxpayer is mere confusion about the interpretation of law or, in fact, information that cannot be readily procured to carry out self-assessment; and (b) conditions - taxpayer is obliged to secure the interests of Revenue by executing a bond and suitable security for the differential amount of tax involved and undertake to pay such differential tax, if any, along with interest. As approval or rejection of provisional assessment is a ‘decision or order’ it is appealable under section 107(1). Order in ASMT4 must be a Speaking Order, even if not elaborate, and must clearly state the findings and be supported by cogent reasons. Most of the information to reach this finding will flow from taxpayer’s application in ASMT1 and response in ASMT3 to notice in ASMT2.

2.8 SUSPENSION OF REGISTRATION

Section 29 permits suspension before cancellation of registration granted to taxpayers. Rules 21, 21A and 22 contain the due process in this regard. Cancellation of registration has some finality to it. Cancellation bars taxpayer from claiming input tax credit and issuing tax invoices. In view of the finality that cancellation involves, rule 21A permits suspension when there is delinquency by registered taxpayer in keeping all compliances current.

In view of the opportunity to reconsider and restore registration especially in an IT-based compliance environment, ‘suspension’ is now the first step in all instances whether it is due to any delinquencies or application for