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2024 (3) TMI 744 - HC - GSTCancellation of GST registration of petitioner - Interpretation of statute - Rule 22 (3) of CER - date of reply to SCN - whether the expression used ‘shall issue an order within a period of 30 days’ is mandatory or directory? - HELD THAT:- Rule 22 (3) of the Rules refers to two separate proceedings. One initiated by the taxpayer by submitting an application seeking cancellation of registration and the other by the proper officer by issuance of show cause notice for cancellation of the registration. The timeline provided for issuance of an order is 30 days for both the proceedings. If the intention was that the proper office would forfeit the right to pass an order, then an anomalous situation would arise with regard to proceedings where the taxpayer voluntarily applies for cancellation. If the proper officer, qua the said proceedings, also forfeits the right to issue an order, then the application seeking cancellation would be deemed to be rejected and the taxpayer would continue to remain registered despite his desire to seek cancellation of registration. The expression ‘shall issue an order’ used in Rule 22 (3) of the Rules cannot be construed as mandatory for proceedings under Rule 21 and directory for proceedings under Rule 20. Accordingly, we hold that the expression “shall be passed within 30 days” used in Rule 22(3) of the Rules is not mandatory but is only directory. The contention of learned counsel for the petitioner cannot be accepted that the authorities have lost the right to pass an order after the lapse of period of 30 days of the filing of the reply by the petitioner to the Show Cause Notice issued under Rule 21 of the Rules. The petition is accordingly disposed of directing the Proper Officer to expeditiously pass an order on the Show Cause Notice, preferably within a period of two weeks from today.
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