2021 (7) TMI 966 - HC - GST

Cancellation of registration of petitioner - non-payment of interest - delayed filing of returns GSTR-3B - HELD THAT - There is no dispute that due to non payment of the interest liability for the period from October, 2018 to April, 2020 for delayed filing of returns GSTR-3B, the petitioner is required to make the payment and only thereafter, as submitted by Mr. Keyal, the registration of the petitioner shall be restored by the respondent GST. On the other hand, the submission of Ms. Bhattacharjee that due to striking out of the registration of the petitioner he could not collect the contractual dues from the various organizations against the contractual job also cannot be disbelieved. Let the petitioner approach the concerned authority more specifically the respondent No. 3 along with an application to permit the petitioner to pay the interest liability in installment as a special case keeping in view the pandemic situation arising out of Covid-19 - Petition disposed off.

Summary

Issues:
1. Striking out of petitioner's firm registration by respondent GST causing payment release issues.
2. Dispute over outstanding interest liability for delayed filing of returns GSTR-3B.
3. Request for restoration of registration and payment of interest liability in installments.
4. Disagreement on granting liberty to pay arrears in installments due to financial crisis.

Analysis:
The petitioner's firm faced registration cancellation by the respondent GST, hindering payment release against contractual works. The petitioner contended that despite clearing outstanding dues shown on the portal, registration restoration was pending, leading to difficulties in receiving contractual payments from organizations like Oil India Limited and Digboi Refinery. The respondent GST highlighted an interest liability of Rs. (73,707X2) for delayed GSTR-3B filings from October 2018 to April 2020, necessitating payment for registration reinstatement.

Considering the submissions, the court acknowledged the requirement for the petitioner to settle the interest liability to restore registration. However, the petitioner's claim of facing challenges in collecting contractual dues due to registration cancellation was deemed credible. In light of the circumstances, the court directed the petitioner to approach the relevant authority, specifically respondent No. 3, with a request to pay the interest liability in installments due to financial constraints exacerbated by the Covid-19 pandemic. The court mandated a swift resolution within seven days upon submission of the application, with registration restoration contingent upon full dues clearance as directed by respondent No. 3.

Ultimately, the writ petition was disposed of at the motion stage with the consent of the learned counsel, emphasizing the importance of adhering to the specified payment terms for prompt registration reinstatement.