Case Title | Chellappa Chokkalingam Vs The Assistant Commissioner (Circle) |
Court | Ahmedabad Hiogh court |
Honorable Judges | Justice Mohammed Shaffiq |
Citation | 2022 (12) GSTPanacea 546 HC Ahmedabad W.P(MD).No.27211 of 2022 |
Judgement Date | 01- December-2022 |
The learned counsel representing the Petitioner argues that the Petitioner failed to submit Goods and Service Tax (GST) monthly returns due to health reasons. Moreover, the Respondent issued a show cause notice on December 30, 2021, requesting an explanation for the non-filing of returns. Subsequently, the Respondent canceled the Petitioner’s GST Registration through an order dated January 10, 2022. However, due to circumstances, the Petitioner couldn’t timely file an application for revocation against the cancellation order.
Both counsels representing the Petitioner and the Respondent jointly submit that a similar situation was addressed by the court in the case of Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc., batch), dated January 31, 2022. In this case, the court issued specific directions.
The learned counsel for the Petitioner contends that the failure to file Goods and Service Tax (GST) monthly returns was due to health issues. Despite a show cause notice from the Respondent on December 30, 2021, seeking explanation for the non-filing of returns, the Petitioner’s GST registration was still cancelled by the Respondent on January 10, 2022. Unfortunately, due to circumstances, the Petitioner couldn’t file for revocation in time.
Both the Petitioner’s and Respondent’s counsels jointly point out a previous ruling by the court in a similar case, Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc., batch), dated January 31, 2022. In this ruling, the court issued specific directions:
1. The petitioners must file returns for the period before the cancellation of registration if they haven’t already, along with any defaulted tax payments, interest on belated payments, and fines and fees for late filing within 45 days of receiving the court order.
2. Payments made cannot be from any unused Input Tax Credit (ITC) in the petitioner’s possession.
3. If any ITC has been used, it must be scrutinized and approved by a competent officer before further use.
4. Only approved ITC can be utilized for future tax liabilities.
5. GST payments and returns for the period after registration cancellation must be made in cash, with correct supply values declared.
This case sets a precedent for resolving similar disputes, ensuring compliance with GST regulations while considering extenuating circumstances such as health issues affecting timely filing.
The petitioner’s counsel argues that the petitioner failed to file monthly Goods and Service Tax (GST) returns due to health issues. Despite a show cause notice issued by the respondent on 30.12.2021 regarding non-filing, the petitioner’s GST registration was cancelled by the respondent via an order dated 10.01.2022. The petitioner couldn’t submit a revocation application in time against this cancellation.
Both the petitioner’s and respondent’s counsels agree that a similar case, Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST), and others (W.P.Nos.25048, 25877, 12738 of 2021 etc., batch), decided on 31.01.2022, sets a precedent. In this case, the court issued specific directions:
1. The petitioners must file returns for the period before registration cancellation, along with any unpaid taxes, interest, fines, and fees within 45 days of receiving the order.
2. Payment of tax, interest, fine, etc., should not be from unutilized or unclaimed Input Tax Credit (ITC).
3. Utilization of any ITC should await scrutiny and approval by the tax department.
4. Approved ITC can only be used for future tax liabilities.
5. The petitioners must pay GST and file returns for the period after cancellation, with cash payments.
6. Utilization of any earned ITC requires scrutiny and approval.
7. The respondent may impose restrictions to prevent misuse of ITC.
8. Registration revives immediately upon payment of tax, penalty, and return upload.
9. The respondent should instruct GST Network, New Delhi, to make portal changes for return filing and payment.
10. The changes must be implemented within 30 days of receiving the order.
11. No costs are awarded.
12. Connected Miscellaneous Petitions are closed.
This direction has been consistently followed by the court in subsequent decisions.
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