Difficult to cancel Excise Registration
IN the same RAC meeting, another issue raised was:
Department is not accepting cancellation of registration of a factory, if a case is pending. In one case, the unit was closed and it was shifted to another bigger location. New registration was taken for the new factory. The first unit was rented one and vacated and some other person occupied the premises. No stocks were there. The unit, as stated above, was shifted to a new location and registration taken. The assessee applied for cancellation of registration but department declined on the ground that a case is pending. The assessee also suggested that he can give an Undertaking/Bond etc as company is not closed but only shifted. But department made the unit to file NIL returns for 2 years. Till date registration has not been cancelled.
The department replied:
As the issue is resolved no comments are offered.
But the fact remains that it is more difficult to get a registration cancelled than getting a new registration.