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CA Final · Indirect Tax Laws · Returns

The registration of Gopal Agencies was cancelled by the proper officer on his own motion for failure to furnish returns. The order of cancellation was served on 1 June without retrospective effect. Gopal Agencies applies for revocation on 20 July. Which statement is correct?

The application is within the ninety-day limit, but because cancellation was for non-filing, it can be filed only after the defaulted returns are furnished and the tax, interest, penalty and late fee due under them are paid. The thirty-day window covers only returns due after cancellation.

  1. AThe application is within the ninety-day period, but it can be filed only after the pending returns are furnished and tax, interest, penalty and late fee under those returns are paidCorrect
  2. BThe application can be filed at once, and returns can follow within thirty days
  3. CThe application is time-barred because only thirty days are allowed
  4. DNo such application is allowed for cancellation due to non-filing

Explanation

Rule 23(1) gives ninety days from service of the cancellation order, so 20 July is in time. The proviso bars an application where cancellation was for non-filing, unless those returns are furnished and tax, interest, penalty and late fee are paid. The thirty-day window applies to returns due after cancellation, not to the defaulted returns.

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