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3.4 Authority to investigate absent
Para 2.12
NOTICES UNDER SECTIONS 25 & 29
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of sufficiency of justification furnished (in adjudication proceedings) do not appear pale, deficient and impoverished. For this reason, justification in REG24 must be: (a) provided within 7 days from date of service of notice in REG23; (b) basis for dues left undischarged and reasons for ‘dispute’ as to the correctness of such dues; and (c) declaration of the need for restoration of said registration. Restoration of registration does not require extensive reasons to support the conclusion for application to be allowed in REG22. But to reject the application in REG5, it will require a Speaking Order. Speaking Order will furnish grounds for taxpayers to carry the matter in appeal and for Appellate Authority to see if unresolved delinquencies prevented (even a willing) Proper Officer from refusing to revoke cancellation or there were any extraneous considerations for such Order.
2.11 VOLUNTARY CANCELLATION
Section 29 permits taxpayer to apply for cancellation of registration that is no longer required. Rule 20 contains the ‘due process’ in this regard. Care must be taken to reconfirm the basis for this determination - registration is no longer required - because output tax with interest and penalty can be demanded, limitation permitting, long after registration is cancelled but input tax credit cannot be allowed if registration stands cancelled. Possible liabilities on cancellation of registration to consider are: (a) arrears of tax, interest and penalties, if any, due; (b) late fee related to monthly or annual or final returns; and (c) dues under section 29(5). Once application for cancellation in REG16 is filed, proceedings skip to the post-suspension stage along with all attendant disabilities. And where any reason to reject the application is detected, notice in REG17 and the rest of the procedure (discussed earlier) will follow until such registration is cancelled. It is often considered that registration cancelled voluntarily does not qualify for revocation (of cancellation) proceedings. But, where this is not the case, revocation is a step in the direction for redressal of grievances.
