Case Title | Tvl Jeyalakhshmi Store Vs Commissioner of Commercial Taxes, Chennai, State Tax Officer, Ramnathapuram. |
Court | Madras High Court |
Honorable Judges | Justice M.Nirmal Kumar |
Citation | 2022 (7) GSTPanacea 101 HC Madras W.P(MD).No.16513 of 2022 |
Judgement Date | 27-July-2022 |
Counsel for Petitioner | B.Rooban |
Counsel for Respondents | P Subbaraj |
The Madurai bench of Madras High Court of Justice M.Nirmal Kumar has upheld that GST registration number of Taxpayer’s should not be cancelled in the interest of revenue for non-filing of returns during the covid-19 pandemic period.
FACTS OF THE CASE
The Petitioner is proprietor of a business and has engaged services of a private accountant. The accountant only had the access to his GST portal for purpose of filing of returns. Due to Covid-19 Pandemic and nationwide lock down, the petitioners business was shut down and resultantly failed to file GST returns. On dated 04.01.2021 petitioner came to know of show cause notice u/s 29(2)(C) of CGST Act for cancellation of registration for failure to file returns for a continuous period of 6 months. In the first week of May 2022 accountant informed petitioner of registration being cancelled by an order of respondent no 2 on dated 25.01.2021, consequently petitioner filed pending returns of nil amount until the month of August 2022. Petitioner made an attempt with request of revocation of cancellation, however due to limitation of period of 90 days from the date of impugned order, the same was not accepted.
The petitioner made reference to order of Principal Secretary/Commissioner proceedings dated 07.04.2022 based on Apex Court order in the case of Tvl Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos 25048,25877,12738 of 2021 etc. batch) dated 31.01.2022. In the said order of Principal Secretary/Commissioner proceedings, he had directed GST officers to exclude period from 15.03.2020 to 28.02.2022 for the purpose of computing the limitation period and condone the delay in filings.
COURT HELD
Considering the facts as recorded, Hon. Court in the interest of revenue, considering the earlier order passed by Apex court in an identical case and resultant order of Principal Secretary/Commissioner, quashed aside the order dated 25.01.2021 of respondent with safeguard by granting conditional relief to the petitioner.
Petitioner was directed to file returns for the period prior to cancellation with payment of tax, penalty, fines, fees for belated return filing within 45 days from the receipt of order. Hon court put restriction on utilisation of ITC, instructed respondent to impose suitable restrictions to control violation on misuse of ITC or by any other dubious means.
ANALYSIS OF THE JUDGEMENT
Cancellation of registration is bad in the interest of revenue, as the person will still do the activities, actions, business/vocation in spite of not having registration.
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