Can extension of time for payment of amounts due be considered for non-submission of the returns continuously for a period of six months?

considered for non-submission

Case Title

M/s Koluthara Exports Ltd vs Union of India & Others.

Court

Kerala High Court

Honorable Judges

Justice Shaji P.Chaly

Citation

2022 (1) GSTPanacea 274 HC Kerala

WP(C) No.2011 of 2022

Judgement Date

20-January-2022

Council for Petitioner

M.Gopikrishnan Nambiar

K John Mathai

Joson Manavalan

Kuryan Thomas

Paulose C.Abraham

Council for Respondent

Sri.Kuryan Thomas

Section

Section 80 of CGST Act

In Favour of

Partly in favour of Assessee

The Kerala High Court bench of Justice Shaji P.Chaly has held that direction can be issued to the Commissioner to dispose of Exhibit P1 within a time frame until such time, Exhibit P8 proceedings can be directed to be kept in abeyance.

FACTS OF THE CASE

This writ petition is filed by the petitioner seeking the following reliefs

To call for records leading to Exhibits P8 notice issued by the 4th respondent and quash the same by issuance of a writ of certiorari or such other writ, order or direction.

To issue a writ of mandamus or any other writ, order or direction, directing the respondents to grant 24 installments to the petitioner to pay the GST liability that would arise on a self-assessment by the petitioner of the business activities undertaken by the petitioner.

The petitioner has registration under the Goods and Services Tax Act. The petitioner has not submitted the returns continuously for a period of six months and consequent to which, the petitioner has submitted Exhibit P1 application before the Commissioner of State Goods and Services Tax Department – 3rd respondent, seeking extension of time for payment of their amounts due, which is pending consideration.

While so, Exhibit P8 notice is now issued by the State Tax Officer, AIT & CT Office, Kuthiyathodu, Alappuzha – 4 th respondent, informing the petitioner that consequent to non-filing of return for a continuous period of six months, the GST registration stands suspended and directing the petitioner to show cause as to why the GST registration shall not be cancelled.

Petitioner is that by virtue of the powers conferred under Section 80 of the Central Goods and Services Tax Act, the Commissioner is vested with powers to extend time and since the said application is pending consideration, unless and until a final adjudication is made to the same, the petitioner would not be in a position to contest the proceedings pertaining to Exhibit P8 suspension of the licence and threat of cancellation.

considered for non-submission

COURT HELD

Considering the facts as recorded, held that direction can be issued to the Commissioner to dispose of Exhibit P1 within a time frame until such time, Exhibit P8 proceedings can be directed to be kept in abeyance.

The writ petition is disposed of directing the Commissioner of State Goods and Services Tax Department – 3 rd respondent to finalise Exhibit P1 within three weeks from the date of receipt of a copy of this judgment.

considered for non-submission

ANALYSIS OF THE JUDGEMENT

In view of the directions issued as above, the final proceedings pertaining to Exhibit P8 and Exhibits P9 and P10 reply submitted by the petitioner, shall be deferred for a period of six weeks and the parties would be guided by the orders passed by the Commissioner as per the direction above in Exhibit P8 application. All the other questions raised in the writ petition are left open.

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M/s Koluthara Exports Ltd

For Reference Visit:

Kerala High Court