2021 (8) TMI 51 - Commissioner - GST

Revocation of cancellation of registration - non filing of GSTR returns for a continuous period of six months and non payment of Interest liability against late discharged cash payment - rejection of application due to not replied to the notice issued within the time specified therein - Rule 23 of the CGST Rules, 2017 - HELD THAT - The appellant has filed returns upto date of cancellation of registration hence, it is found that the appellant has substantially complied with the said provisions of the CGST Act/Rules, 2017 in the instant case. The registration of appellant may be considered for revocation by the proper officer - the proper officer are directed to consider the revocation application of the appellant after due verification of payment particulars of tax, late fee, interest and status of returns - appeal allowed.

Summary

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

Detailed Analysis:

1. Background of the Case:
The appeal was filed under Section 107 of the Central Goods and Service Tax Act, 2017 against the order cancelling the GST registration due to non-filing of returns and non-payment of interest liability. The appellant, engaged in Housekeeping & manpower supply work, explained their situation of not being able to file returns due to health reasons and requested revocation of the cancellation.

2. Adjudication and Appeal:
The Proper Officer cancelled the registration due to non-filing of returns and non-payment of interest liability. The appellant filed an appeal stating compliance with the GST Act, timely filing of returns, and payment of pending interest. A virtual personal hearing was held where the Authorized Representative reiterated the grounds of appeal.

3. Consideration of Facts:
The Commissioner reviewed the case, noting that the appellant had filed pending returns and paid the interest amount. The appellant also submitted copies of GSTR 3B returns for multiple periods. The Commissioner examined the relevant provisions regarding revocation of cancellation of registration under Rule 23 of the CGST Rules, 2017.

4. Legal Provisions and Circular:
The Commissioner referenced Rule 23 of the CGST Rules, 2017, which outlines the process for revocation of cancellation of registration. Additionally, a circular by the Central Board of Indirect Taxes & Customs clarified the requirements for revocation in cases of non-filing of returns.

5. Decision and Order:
After reviewing the submissions and records, the Commissioner found that the appellant had substantially complied with the provisions of the CGST Act/Rules. Therefore, the Commissioner allowed the appeal and ordered the Proper Officer to consider the revocation application after verifying the payment details and return status.

6. Conclusion:
The appeal was disposed of in favor of the appellant, with the decision to consider revocation of the cancellation of GST registration based on the appellant's compliance with the necessary requirements.