2020 (12) TMI 56 - Commissioner - GST

Cancellation of GSTIN - Application for revocation of cancellation of registration was also rejected due to non submission of reply to the SCN within the time specified therein - HELD THAT - The adjudicating authority has rejected/cancelled the registration of the appellant due to non filing of returns for the continuous period of six months and has also rejected the application for revocation of cancellation of registration for not submission of reply to the show cause notice dated 20.02.2020 within the specified period. The appellant has submitted that they could not submit answer to the show cause notice due to their old accountant has mentioned his own mobile number and email id so that they were not aware of any type of notice and also of time limit. The appellant was required to follow the procedure as prescribed under rule 23 of the CGST Rules 2017 as clarified vide circular No. 99/18/2019-GST dated 23.04.2019. Since, the jurisdictional authority has revoked the said registration and is active, the appeal has becomes infructuous and accordingly rejected.

Summary

Issues:
Revocation of GST registration due to non-filing of returns, rejection of application for revocation, compliance with procedural requirements under CGST Rules, jurisdictional authority's action.

Analysis:
The appeal was filed against the cancellation of GST registration of M/s Gazebo Hotel and Resorts due to non-filing of returns for six months. The application for revocation was rejected for not submitting a reply to the show cause notice within the specified time. The appellant claimed to have completed all pending returns and requested an early hearing, but failed to attend the scheduled personal hearing.

Upon review, it was found that the registration was cancelled due to non-compliance with return filing requirements. The appellant argued that they missed the notice deadline due to an error by their former accountant. The CGST Rules, specifically Rule 23, outline the procedure for revocation of cancellation of registration, emphasizing the need to file all due returns and pay outstanding amounts before applying for revocation.

A circular by the Central Board of Indirect Taxes & Customs clarified the procedural requirements for revocation of registration post-cancellation. It highlighted the necessity of filing all due returns before applying for revocation. The appellant was expected to adhere to the guidelines outlined in the CGST Rules and the circular for revocation of the cancelled registration.

The adjudicating authority confirmed the active status of the GST registration, rendering the appeal moot. Consequently, the appeal was rejected due to the registration being reinstated by the jurisdictional authority. The decision was based on the fact that the registration was active, making the appeal unnecessary and hence, rejected.