CA Final · Indirect Tax Laws · Registration
Kaveri Enterprises, a regular taxpayer, was served a show-cause notice proposing cancellation of its registration for non-filing of returns. While the proceedings are pending, which of the following statements is correct as per the CGST Act, 2017?
The proper officer may suspend the registration for the prescribed period and in the prescribed manner while the cancellation proceedings are pending. Cancellation is not automatic on issue of notice, and cancellation cannot be ordered without giving the person an opportunity of being heard.
- AThe proper officer may suspend the registration for the period and in the manner prescribed, pending the proceedingsCorrect
- BThe registration is automatically cancelled from the date of notice
- CThe proper officer must cancel the registration without hearing since the returns are not filed
- DThe registration cannot be suspended and continues in full force until the final order
Explanation
Section 29(2) second proviso lets the proper officer suspend registration for such period and in such manner as prescribed while cancellation proceedings are pending. The first proviso also requires an opportunity of being heard before cancellation, so the option denying a hearing is wrong. Cancellation is not automatic on notice.
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