Case Title | PRONOTI SARKAR VS UNION OF INDIA |
Court | Gauhati High Court |
Honorable judges | Justice Sanjay Kumar Medhi |
Citation | 2023 (02) GSTPanacea 303 HC Gauhati WP(C)/1049/2023 |
Judgement Date | 24-February-2023 |
The petitioner firm, which is engaged in executing works contracts and trading hardware goods, holds GST registration as mandated by law. However, due to uncontrollable circumstances, including the proprietor’s ill health and a lack of knowledge regarding online compliance procedures, the petitioner failed to file GST returns regularly. Consequently, on July 8, 2022, a show cause notice was issued to the petitioner, questioning why their GST registration should not be cancelled. Subsequently, on August 10, 2022, an order was passed cancelling the petitioner’s GST registration.
Following this, the petitioner filed an appeal against the cancellation order, which is currently pending before the appellate authority. Shri Mishra, the petitioner’s legal counsel, argued that the cancellation of GST registration has severely disrupted the petitioner’s business operations. Given these circumstances, he urged the court to urgently restore the petitioner’s GST registration to mitigate the adverse effects on their business activities.
In response to the petitioner’s grievance, the court has taken note of the situation and issued directives accordingly.
The petitioner firm, engaged in executing works contracts and trading hardware goods, was required to maintain GST registration. Despite having obtained the necessary registration, the petitioner failed to regularly file returns due to uncontrollable circumstances, including health issues and lack of knowledge about online compliance. Consequently, on July 8, 2022, a show-cause notice was issued, leading to the cancellation of the GST registration on August 10, 2022.
The petitioner appealed against this cancellation, which is still pending. Due to the cancellation, the petitioner’s business operations have been severely impacted, prompting the petitioner’s counsel, Shri Mishra, to seek urgent restoration of the GST registration from the Court.
The Court, acknowledging the petitioner’s grievances, directed the Standing Counsel for GST to assess if immediate relief could be provided. Upon reviewing, Shri Keyal, the Standing Counsel, indicated that the GST registration could be reinstated immediately if the petitioner filed up-to-date returns and paid all due taxes and other statutory amounts as required by Rule 23 of the CGST Rules, 2017.
Shri Mishra confirmed that the petitioner had already settled the necessary dues and would pay any additional amounts if required. Given this assurance, the Court found no reason to delay further proceedings. Thus, with the consent of both parties, the Court ordered the immediate restoration of the petitioner’s GST registration upon fulfillment of the conditions mentioned.
The Court instructed that this process be completed as swiftly as possible and subsequently disposed of the writ petition.
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