2021 (7) TMI 550 - Commissioner - GST

Cancellation of registration of petitioner - non filing of GST returns for a continuous period of six months - rejection also on the ground of non payment of tax, late fee and interest - HELD THAT - The appellant has filed all his pending returns upto date of cancellation of registration and he has also deposited tax liabilities, late fee and interest, therefore it is found that the appellant has now been complied with the relevant provisions in the instant case. In view of the above, the registration of appellant may be considered for revocation by the proper officer. The appellant are directed to file the revocation application in the prescribed form through common portal - The proper officer directed to consider the revocation application of the appellant after due verification of payment particulars of tax, late fee, interest and filing of status returns. Appeal disposed off.

Issues Involved:
Appeal against cancellation of GST registration due to non-filing of returns and non-payment of tax, late fee, and interest. Delay in filing the appeal beyond the prescribed period under Section 107(1) of CGST Act, 2017. Applicability of Supreme Court orders regarding limitation periods during the Covid-19 pandemic. Compliance with rules for revocation of cancellation of registration under Rule 23 of CGST Rules 2017. Interpretation of circular No.99/18/2019-GST regarding filing of returns for revocation of cancellation of registration.

Analysis:

1. Cancellation of GST Registration:
The appeal was filed against the cancellation of GST registration due to non-filing of returns and non-payment of tax, late fee, and interest by the Proper Officer. The appellant submitted that they had filed all pending returns and cleared tax liabilities, late fee, and interest until the cancellation of registration. The registration was cancelled through Form GST REG-19, and the appellant requested revocation based on compliance with the relevant provisions.

2. Delay in Filing Appeal:
The appellant filed the appeal with a delay of 90 days beyond the prescribed period under Section 107(1) of the CGST Act, 2017. However, the delay was considered in light of the Supreme Court orders issued during the Covid-19 pandemic, extending the limitation period for filing appeals. The appellant's appeal was found not to be time-barred based on the Supreme Court's directions.

3. Applicability of Supreme Court Orders:
The judgment referred to the orders of the Hon'ble Supreme Court regarding the extension of limitation periods due to the Covid-19 pandemic. The Court extended the period of limitation for filing petitions, applications, and appeals, providing relief to litigants affected by the pandemic. The appellant's appeal was considered in line with these orders, ensuring that the delay in filing was justified.

4. Compliance with Revocation Rules:
The judgment highlighted Rule 23 of the CGST Rules 2017, which outlines the procedure for revocation of cancellation of registration. The appellant was required to file pending returns and clear tax dues before applying for revocation. The judgment noted that the appellant had fulfilled these requirements by filing pending returns and settling tax liabilities, late fee, and interest.

5. Interpretation of Circular No.99/18/2019-GST:
The judgment referenced Circular No.99/18/2019-GST, which clarified the conditions for filing revocation applications after the cancellation of registration. The circular emphasized the need to file all pending returns before applying for revocation. The appellant's compliance with this circular was a crucial factor in the decision to order the filing of a revocation application.

6. Decision and Order:
Based on the appellant's compliance with the relevant provisions and the Supreme Court orders regarding limitation periods, the Commissioner (Appeals) ordered the appellant to file a revocation application through the common portal. The Proper Officer was directed to consider the revocation application after verifying the payment particulars of tax, late fee, interest, and filing status returns. The appeal was disposed of accordingly, allowing for the consideration of revocation of the appellant's registration.

This detailed analysis covers the key issues involved in the judgment, providing a comprehensive understanding of the legal reasoning and decisions made by the Commissioner (Appeals) in this case.

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