2022 (10) TMI 1227 - HC - GST

Cancellation of GST registration of the petitioner - petitioner has not filed Return in GSTR 3B for more than six months - HELD THAT - In view of the fact that this Court has been consistently following the directions issued in the case of TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR. 2022 (2) TMI 933 - MADRAS HIGH COURT and the Revenue/Department has also accepted the said view as evident from the fact that no appeal has been filed in any of the matters, this Court intends to follow the above order of this Court. In view of the same, this Court feels that the benefit extended by this Court in the earlier orders referred to above in Suguna Cutpiece Centre's case, may be extended to the Petitioner. Petition disposed off.

Summary

Issues:
1. Cancellation of GST registration due to non-filing of returns for over six months.
2. Appeal against the cancellation order filed beyond the statutory time limit.
3. Comparison with a previous judgment for similar circumstances.
4. Consistent application of directions issued in the previous judgment by the High Court.

Analysis:
1. The Writ Petition challenges the cancellation of GST registration by the 1st respondent due to the petitioner's failure to file GSTR 3B returns for over six months. The petitioner, engaged in works contract services, cited non-payment from the District Rural Development Agency post-pandemic as the reason for non-remittance of taxes and non-filing of returns. The cancellation order was appealed beyond the statutory time limit prescribed under Section 107.

2. The petitioner's counsel referred to a previous judgment by the High Court in a similar case, Tvl. Suguna Cutpiece vs. The Appellate Deputy Commissioner, which provided specific directions for reinstatement of registration. The directions included filing past returns with defaulted taxes, disallowing use of unutilized Input Tax Credit, scrutinizing and approving any utilized credit, cash payment of future GST liabilities, and imposing restrictions to prevent misuse of the order.

3. The High Court noted its consistent application of the directions from the Suguna Cutpiece case in subsequent judgments involving GST registration cancellations. The Revenue/Department's acceptance of this view was highlighted by the absence of appeals against such decisions. Therefore, the Court decided to extend the benefits of the Suguna Cutpiece judgment to the petitioner in this case.

4. Consequently, the Court ordered the Writ Petition in line with the terms mentioned in the Suguna Cutpiece judgment, emphasizing no additional costs. The decision aimed to provide relief to the petitioner in a manner consistent with previous rulings and established principles, ensuring fair treatment and adherence to legal precedents.