Revocation of Cancelled GST Registration Allowed Due to Assessee’s Willingness to deposit any outstanding tax and dues.
Summary in Key Points:
- Issue: Whether the assessee can apply for revocation of their cancelled GST registration due to non-filing of returns, given their willingness to comply with GST regulations by filing pending returns and paying outstanding dues.
- Facts: The petitioner’s GST registration was cancelled for not filing returns for a continuous period of six months. However, the petitioner expressed their willingness to pay the outstanding tax, interest, and late fees, and sought to have the cancellation order revoked.
- Decision: The High Court allowed the petitioner to apply for revocation of the cancellation order within two weeks, provided they file all pending GST returns and deposit any outstanding tax and dues.
ANALYSIS:
The High Court ruled in favor of the assessee, providing the following directions:
- Application for Revocation: The petitioner was allowed to file an application for revocation of the cancellation order within two weeks.
- Filing of Pending Returns: The petitioner was required to furnish all pending GST returns along with the revocation application.
- Payment of Dues: The petitioner was also required to deposit any outstanding tax, interest, and late fees with the application.
- Consideration by Authority: The court directed the competent authority to consider the petitioner’s application and pass an appropriate order upon receiving the application with the pending returns and dues.
Important Note: This case highlights the importance of giving taxpayers a chance to rectify their mistakes and re-enter the GST system. The High Court’s decision recognizes the petitioner’s willingness to comply with GST regulations by filing pending returns and paying outstanding dues. This approach encourages tax compliance and provides a fair opportunity for taxpayers to continue their business operations without being permanently penalized for past non-compliance.
HIGH COURT OF UTTARAKHAND
Shanti Devi Manral
v.
Commissioner, Central Goods & Service Tax
Pankaj Purohit, J.
Writ Petition (M/S) No. 3121 of 2024
DECEMBER 5, 2024
Ashish Agarwal, Adv. for the Petitioner. Shubham Bhardwaj and Shobhit Saharia, Advs. for the Respondent.
ORDER
Pankaj Purohit, J.- Petitioner is a proprietorship firm who runs a business under the name and style ‘M/s Shanti Devi Manral’. Petitioner is engaged in the supplier of services. Petitioner is registered under the Central Goods and Service Tax Act, 2017 (for short “the CGST Act, 2017”).
2. The registration of the petitioner has been cancelled by respondent no.2 vide order dated 31.05.2021 for non filing of the GST return for a continuous period of six months.
3. Learned counsel for the petitioner contends that now the petitioner is ready to make the payment towards GST return for a period of six months as well as the penalty, if any, imposed by the respondentdepartment.
4. Petitioner has sought the following reliefs:-
“i. Issue a suitable writ, order or direction in the nature of certiorari calling the record of the case and quash the cancellation of GST Registration order dated 17/01/2022 (Annexure No.1 to W.P) as petitioner is ready to paid all the balance tax, interest on it and late fee if any.
ii. Issue a suitable writ, order or direction in the nature of certiorari calling the record of the case and quash the order in appeal (Annexure No.2) passed by respondent no.3.
iii. Issue a suitable writ, order or direction in the nature of mandamus permitting the petitioner to prefer a representation before the Respondent No.2 against the order of the cancellation of the GSTIN 05ADWPB3932B2ZU of the petitioner and further directed the respondent no.2 to consider the application of the petitioner in accordance with law.”
5. Learned counsel for the petitioner submits that identical controversy has been decided by this Court in WPMS No.2285 of 2024.
6. The said submission of learned counsel for the petitioners has not been opposed by learned counsel for the respondents.
7. In view of the consensus between the parties, the matter is covered by the order passed in WPMS No.2285 of 2024, the present writ petition is also decided in terms of the said order. The petitioner shall be at liberty to move an application for revocation or cancellation of the order under Section 30(2) of the CGST Act, 2017, within two weeks.
8. With this application, the petitioner shall also furnish all the GST returns, which he fails to submit and he will also deposit the outstanding tax and dues of the goods and service tax, if any, with his application. If he makes such an application within stipulated period, the Competent Authority shall consider petitioner’s application and pass appropriate order as per law, within four weeks thereafter.
9. Accordingly, the writ petition stands disposed of.
10. Pending application, if any, stands disposed of.