Page 108 - GSTL_2nd April 2020_Vol 35_Part 1

10 GST LAW TIMES [ Vol. 35
er was rendered on 10-12-2019 and that on 10-12-2019, the petitioner had filed
returns for the month of May, 2019 as can be seen from Ext.P-2 document.
4. Sec. 29(2) of the CGST Act provides as follows :
“Sec. 29. Cancellation of registration. - (1)....
xxx xxx xxx
(2) The proper officer may cancel the registration of a person from such
date, including any retrospective date, as he may deem fit, where, -
(a) a registered person has contravened such provisions of the Act
or the rules made thereunder as may be prescribed; or
(b) a person paying tax under Section 10 has not furnished re-
turns for three consecutive tax periods; or
(c) any registered person, other than a person specified in clause
(b), has not furnished returns for a continuous period of six
months; or
(d) any person who has taken voluntary registration under sub-
section (3) of section 25 has not commenced business within
six months from the date of registration; or
(e) registration has been obtained by means of fraud, wilful mis-
statement or suppression of facts :
Provided that the proper officer shall not cancel the registration without
giving the person an opportunity of being heard.”
Rule 22 of the CGST Rules provides as follows :
“Rule 22. Cancellation of registration. - (1) Where the proper officer has
reasons to believe that the registration of a person is liable to be cancelled
under section 29, he shall issue a notice to such person in FORM GST REG-
17, requiring him to show cause, within a period of seven working days
from the date of the service of such notice, as to why his registration shall
not be cancelled.
(2) The reply to the show cause notice issued under sub-rule (1) shall be
furnished in FORM REG-18 within the period specified in the said sub-rule.
(3) Where a person who has submitted an application for cancellation of
his registration is no longer liable to be registered or his registration is liable
to be cancelled, the proper officer shall issue an order in FORM GST REG-
19, within a period of thirty days from the date of application submitted
under [sub-rule (1) of] Rule 20 or, as the case may be, the date of the reply
to the show cause issued under sub-rule (1), cancel the registration, with ef-
fect from a date to be determined by him and notify the taxable person, di-
recting him to pay arrears of any tax, interest or penalty including the
amount liable to be paid under sub-section (5) of section 29.
(4) Where the reply furnished under sub-rule (2) is found to be satisfacto-
ry, the proper officer shall drop the proceedings and pass an order in
FORM GST REG-20 :
Provided that where the person instead of replying to the notice served un-
der sub-rule (1) for contravention of the provisions contained in clause (b)
or clause (c) of sub-section (2) of section 29, furnishes all the pending re-
turns and makes full payment of the tax dues along with applicable interest
and late fee, the proper officer shall drop the proceedings and pass an order
in FORM GST-REG 20.

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