2021 (5) TMI 170 - Commissioner - GST

Revocation of cancellation of registration - Rejection of application for revocation of cancellation of registration as appellant did not discharge their interest liability of ₹ 55,018/- against cash payment for delay filing of return and the reply to the show cause notice not found to be satisfactory - HELD THAT - Central Board of Indirect Taxes Customs, New Delhi has clarified the issue vide circular No.99/18/2019-GST dated 23.04.2019 wherein it has been clarified that in terms of the second proviso to sub-rule (1) of rule 23 of the said Rules, all returns required to be furnished in respect of the period from the date of order of cancellation till the date of order of revocation of cancellation of registration have to be furnished within a period of thirty days from the date of the order of revocation. The appellant has now been complied with the said provisions, therefore, the registration of appellant may be considered for revocation by the proper officer - the appellant is ordered to file the revocation application in the prescribed form through common portal - the proper officer is ordered to consider the revocation application of the appellant subject to the verification of payment particulars, filing of returns and compliance of the provisions of CGST Act and rules made thereunder. Appeal disposed off.

Summary

Issues:
Revocation of cancellation of GST registration due to non-filing of returns and non-payment of interest liability.

Analysis:

Issue 1: Revocation of Cancellation of GST Registration
The appellant, a construction firm, filed an appeal against the cancellation of their GST registration due to non-filing of returns for six months and non-payment of interest liability. The appellant contended that they had filed all pending returns, paid applicable penalties and interest, and deposited the interest liability of ?55,018. During a virtual hearing, the appellant's representative confirmed the compliance with tax payments and interest liabilities. The appellate authority reviewed the case records and submissions. The authority noted that the registration was cancelled due to non-filing of returns and non-payment of interest. The appellant subsequently filed pending returns, paid taxes, late fees, and interest, and submitted proof of payment. The authority referred to Rule 23 of the CGST Rules, which outlines the procedure for revocation of cancellation of registration. The authority also cited a circular clarifying the requirements for revocation in cases of non-filing of returns. Based on the appellant's compliance with the rules and payment of dues, the authority ordered the appellant to file a revocation application through the common portal. The proper officer was directed to consider the revocation application upon verification of payment details and compliance with GST laws and rules.

Conclusion:
The appeal was disposed of in favor of the appellant, allowing for the revocation of the GST registration cancellation upon meeting the specified requirements and procedures outlined in the CGST Rules.