GST Registration Revocation Allowed; Assessee Directed to File Application and Pay Dues
Issue: Whether an assessee, whose GST registration was cancelled for non-filing of returns, should be allowed to file a revocation application and have it considered.
Facts:
- The assessee’s GST registration was cancelled for non-filing of returns for a considerable period.
- The assessee expressed willingness to pay all outstanding tax, interest, and penalties.
Decision:
- The court allowed the assessee to file a revocation application under Section 30(2) of the CGST Act within two weeks, along with all pending returns and tax dues.
- The authority was directed to consider the application and pass an appropriate order within four weeks.
- The court noted that similar relief was granted in an earlier case (WPMS No. 2285 of 2024).
- The writ petition was disposed of.
Key Takeaways:
- Opportunity for Revocation: Assessees whose registrations are cancelled for non-filing of returns are given an opportunity to seek revocation.
- Compliance with Obligations: The assessee must file all pending returns and pay all outstanding tax dues, interest, and penalties.
- Time-Bound Directions: The court provided specific timeframes for the assessee to file the application and for the authority to consider it.
- Consistency in Relief: The court’s decision is consistent with similar relief granted in earlier cases.
- Judicial Discretion: The court exercised its discretion to provide relief to the assessee, demonstrating a willingness to allow rectification of non-compliance.
- The court is taking a pragmatic approach, and allowing the tax payer to become compliant, instead of permanently excluding them.
HIGH COURT OF UTTARAKHAND
Mohan Bahuguna
v.
Assistant Commissioner
Pankaj Purohit, J.
Writ Petition (M/S) No. 2937 of 2024
OCTOBER 24, 2024
Pradeep Upreti, Adv. for the Petitioner. M.S. Bisht, Brief Holder for the State.
ORDER
1. Heard learned counsel for the parties.
2. Petitioner is a proprietor of Bahuguna Photo Studio and Gift Center having principal place of business at Bhimtal. Petitioner deals as a service provider. Petitioner is registered under the Central Goods and Service Tax Act, 2017 (for short “the CGST Act, 2017”).
3. The registration of the petitioner has been cancelled by the respondent vide order dated 07.08.2023 for non filing of the GST return for a considerable period.
4. Learned counsel for the petitioner contends that now the petitioner is ready to make the payment towards GST return as well as the penalty, if any, imposed by the respondent-department.
5. Petitioner has sought to 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 07.08.2023 Ref. No.ZA050823005691R issued by the respondent as petitioner is ready to pay all the balance tax, interest on it and late fee if any.
6. Learned counsel for the petitioner submits that identical controversy has been decided by this Court in WPMS No.2285 of 2024.
7. The said submission of learned counsel for the petitioner has not been opposed by learned counsel for the respondent.
8. 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.
9. 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 and interest 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.
10. Accordingly, the writ petition stands disposed of.
11. Pending application, if any, stands disposed of.