2021 (12) TMI 1221 - Commissioner - GST

Cancellation of registration of registration of petitioner - non filing of returns for a continuous period of six months - non-deposit of interest liability against late discharged cash payment - HELD THAT - The appellant has filed and submitted copies of GSTR-3B return for the period April-2020, and May-2020, June-2020, July-2020, August-2020, and September-2020 respectively and also submitted copy of Form DRC-03 ARN No. AD0802210113550 dated 22.02.2021 amounting to ₹ 61,064/- towards payment of due interest liability. The appellant has filed returns upto date of cancellation of registration hence, the appellant has substantially complied with the said provisions of the CGST Act/Rules,2017 in the instant case. Therefore, the registration of appellant may be considered for revocation by the proper officer. The proper officer to consider the revocation application of the appellant after due verification of payment particulars of tax, late fee, interest and status of returns - Appeal disposed off.

Summary

Issues:
- Cancellation of GST registration due to non-filing of returns
- Rejection of registration cancellation application for non-payment of interest liability
- Appeal against the rejection of registration cancellation application

Analysis:
1. Cancellation of GST registration due to non-filing of returns:
The Proper Officer canceled the GST registration of the appellant due to non-filing of returns for a continuous period of six months. The registration cancellation application was rejected as the appellant did not deposit interest liability of ?61,064 against late discharged cash payment.

2. Rejection of registration cancellation application for non-payment of interest liability:
The appellant filed an appeal against the rejection of the registration cancellation application. The appellant submitted that all pending returns were filed, and government dues were paid. The appellant also deposited ?61,064 towards interest liability. The appellant provided evidence of filing GSTR-3B returns and the payment of interest liability.

3. Appeal against the rejection of registration cancellation application:
During the virtual personal hearing, the Authorized Representative reiterated the grounds of appeal. The Additional Commissioner found that the appellant had filed all pending returns and paid all government dues, including the interest liability of ?61,064. The appellant substantially complied with the provisions of the CGST Act/Rules, 2017. The Additional Commissioner allowed the appeal and directed the proper officer to consider the revocation application after verifying payment particulars and return status.

In conclusion, the appeal was allowed, and the registration cancellation was considered for revocation by the proper officer. The appellant's compliance with filing returns and paying dues led to the decision in favor of revocation. The judgment emphasized the importance of meeting statutory requirements for revocation of registration cancellation.