Petitioner | Tvl. GK Digital Printing |
Respondent | Asstt. Commissioner (Circle) |
Decision by | Madras High Court |
Date of order or Judgement | 1-April-2022 |
Citation no. | W.P. Nos. 27365 & 68 of 2021 2022 (4) GSTPanacea 31 HC Madras |
Hon’ble Judge | Justice C.Saravanan |
Decision | In Favour of Assessee |
Revocation of Cancellation of GST Registration Allowed. HC directed assessee to file all returns prior to cancellation with tax payment if any within 45 days from the receipt of this order.
Revocation of Cancellation-Facts of the Case
Revocation of Cancellation-It is the case of the Petitioner that its registration was cancelled vide order dated 16.10.2019 by the respondents for non-filing of returns continuously for period of six months.
That the petitioner instead of filing an application for revocation of registration preferred an appeal against the said order.
The said appeal was dismissed on the ground of limitation, observing that ‘the Honourable Supreme Court in Suo-Motu writ petition (Civil) No.3 of 2020 is not applicable to the case of the petitioner as the petitioner received the copy of the order on 16.10.2019 and had time till 15.01.2020 for filing the appeal, and even one month extended period if the sufficient cause is shown, which expired on 15.02.2020.
However, the Appellant filed the appeal before this forum only on 23.08.2021 by a further delay of one year, six months and 8 days.
Therefore, the appellant is ineligible to take shelter under the above mentioned Supreme Court’s order.
Argument Before Court
Revocation of Cancellation-Petitioner’s Contention
Revocation of Cancellation-It was submitted on the behalf of the petitioner that for the registered persons who failed to furnish the return in FORM GSTR-3B for the months of July, 2017 to April, 2021, by the due date but furnished the said return between the period from the 1 day of June, 2021 to the 31 day of August, 2021, the total amount of late fee under Section 47 of the CGST Act, 2017 was waived which is in excess of five hundred rupees.
The returns have been filed with payment of late fee till November 2021 as per Notification No. 19/2021 – Central Tax.
However, the petitioner has not been permitted to file the requisite returns with payment of GST due to the cancellation registration vide impugned order 16-10-2019.
Therefore, he prays for quashing of impugned orders and revocation of the cancellation of the GST registration.
Revocation of Cancellation-Respondent’s Argument
Revocation of Cancellation-The respondent submitted that the petitioner has not filed returns for more than six months.
The petitioner appeal filed by the petitioner was dismissed on the ground of limitation as it was filed with delay.
Thus, requested for dismissing the Writ Petition.
Madras High Court Held
Revocation of Cancellation-The Hon’ble High Court found that the issue involved in the matter was considered in detail by this Court in Suguna Cutpiece Center Vs. The Appellate Deputy Commissioner (ST) (GST) and another, in W.P.No.25048 of 2021 it was held that:
1. Since, no useful will be served by not allowing persons like the petitioners to revive their registration and integrate them back into the main stream, I am of the view that the impugned orders are liable to be quashed and with few safeguards;
2.There are adequate safeguards under the GST enactments which can also be pressed against these petitioners even if their registrations are revived so that;
3. Therefore, if such a person is not allowed to revive the registration, the GST will not be paid,
4. These petitioners deserve a right to come back into the GST fold and carry on their trade and business in a legitimate manner.
The Writ Petitions were allowed subject to conditions that:-
(i) The petitioners are directed to file their returns for the period prior to the cancellation of registration, together with tax within a period of 45 days from the date of receipt of a copy of this order,
(ii) Payment of tax, interest, fine/fee shall not be from adjustment of Input Tax Credit,
(iii) Input tax credit lying unutilized shall not be utilized without scrutiny or approved by the Department,
(iv) Approved ITC shall be allowed to discharge future tax liability,
(v) On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith,
(vi) The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow these petitioners to file their returns and to pay the tax/penalty/fine.
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