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CA Final · Indirect Tax Laws · Registration

Meera Engineering's registration was cancelled by the proper officer on his own motion for non-filing of returns. Earlier, Meera had failed to pay tax of ₹1,50,000 for a period before the cancellation date, which the department determines only after cancellation. Meera also now wishes to seek revocation. Which statement is correct?

The tax liability of ₹1,50,000 continues despite cancellation, even if determined later, under section 29(3). Meera, whose registration was cancelled by the officer on his own motion, may apply for revocation in the manner, time and conditions prescribed, not within a fixed thirty days stated in the Act.

  1. AThe liability of ₹1,50,000 survives cancellation even though it is determined after the cancellation date, and Meera may apply for revocation of cancellation in the prescribed manner, time and conditionsCorrect
  2. BThe liability lapses on cancellation because it was not determined before the cancellation date
  3. CRevocation may be applied for only within a fixed thirty days stated in section 30 of the Act
  4. DA registered person whose registration was cancelled on his own application may seek revocation under section 30(1)

Explanation

Section 29(3) says cancellation does not affect liability for any period before cancellation, whether determined before or after the cancellation date, so the liability survives. Section 30(1), as amended, allows a person whose registration was cancelled by the proper officer on his own motion to apply for revocation in such manner, within such time and subject to such conditions as prescribed; the fixed thirty-day wording was substituted. Revocation is for cancellation on the officer's own motion, not on the person's own application.

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