2021 (8) TMI 497 - Commissioner - GST

Cancellation of GST registration - time limitation - rejection of application for revocation of cancellation of registration through Form GST REG-05 dated 05.11.2020 due to not replied to the show cause notice within the time specified therein - 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 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 proper officer is 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:
1. Timeliness of the appeal filing.
2. Validity of the cancellation of GST registration.
3. Compliance with the provisions for revocation of cancellation of registration.

Issue-wise Detailed Analysis:

1. Timeliness of the Appeal Filing:
The appellant filed the appeal with a delay of 98 days beyond the normal period prescribed under Section 107(1) of the CGST Act, 2017. The appellant cited reasons such as the proprietor's old age, health issues, and the COVID-19 lockdown for the delay. The statutory provisions under Section 107(4) allow condonation of delay for only up to one month beyond the prescribed period if sufficient cause is shown. However, the Supreme Court's order in Suo Motu Writ Petition (Civil) No.3 of 2020 extended the limitation period due to the pandemic, which was further extended by subsequent orders. Consequently, the appeal was considered within the extended limitation period as per the Supreme Court's directions and CBIC notifications.

2. Validity of the Cancellation of GST Registration:
The appellant's GST registration was canceled due to non-filing of GSTR returns for six consecutive months. The application for revocation was rejected as the appellant did not respond to the show-cause notice within the specified time. The appellant argued that the cancellation was not justified as they had filed returns till November 2019 and had applied for revocation in December 2019. The appellant also highlighted the impact of the COVID-19 lockdown on their ability to comply with the requirements.

3. Compliance with Provisions for Revocation of Cancellation:
The appellant submitted evidence of filing all pending returns and payment of tax liabilities, late fees, and interest. Rule 23 of the CGST Rules, 2017, and the related CBIC circular require that all due returns and payments be made before revocation can be considered. The appellant complied with these provisions by filing returns and making payments for the relevant periods. The adjudicating authority was satisfied with the compliance and allowed the appeal, directing the proper officer to consider the revocation application after verifying the payment particulars and status of returns.

Conclusion:
The appeal was allowed, and the proper officer was directed to consider the revocation application after due verification of compliance with tax, late fee, interest payments, and return filings. The appeal was disposed of accordingly.