Section 10 of the CGST Act, 2017— Composition Scheme -– The petitioner challenged the non-cancellation of composition permission. The tax consultant of the petitioner erroneously chose the option of composition at the time of obtaining the registration. The composition permission was effected from 26.12.2021. The petitioner did not make any supply by making use of such composition permission. The petitioner exported the goods in March, 2022 being wholly unaware that it was operating under the composition permission. Respondents also accepted the Letter of Undertaking for allowing without payment of tax. He filed an application for withdrawal from composition levy on 8.4.2022. The composition permission was withdrawn with effect from 8.4.2022 but the portal did not allow him to retrospectively withdraw from the composition permission. The petitioner was not in a position to file returns as a regular taxable person. He filed an application before the jurisdictional officer on 16.6.2022 to enable him to file returns as regular taxable person. He was issued a Notice on 27.6.2022 as a return defaulter. The court observed that his export has been made on 16th March, 2022, as per this provision he ceases to satisfy the conditions mentioned in Section 10 and therefore, his request for cancellation of registration under the composition permission shall need to be essentially from the date on which, he had breached the condition stipulated in Section 10 . The limitation of the software should not become the limitation of the implementation of the statue which otherwise is quite clear.

Held that:- The Hon’ble High Court directed the respondent-authority to take care of the software. Let their limitations be also addressed by the highest authority and permitted the respondent to decide the tax liability in accordance with law within period of two weeks.