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2022 (5) TMI 346 - HC - GSTRevocation of cancellation of the GST registration of the petitioner - restoration of GST registration of the petitioner on the GST portal - seeking direction not to levy any late fees/penalty for late filing of returns by the petitioner for the months of August 2021 to March 2022 - HELD THAT - From the records, it appears that as per own case of the respondents a temporary mechanism to restore cancelled registration was created in the back end and an advisory vide e-mail dated 16.06.2021 was issued in this regard to restore registrations cancelled on the request of the dealers or pursuant to the orders passed by appellate authorities/High Court, but a permanent mechanism could not be developed until the aforesaid advisory dated 23.03.2022 - But now it developed and deployed a functionality in the name of Restoration of Cancelled Registration with effect from 23.03.2022 to facilitate the jurisdictional Range Officers to restore the registration in pursuance of judicial/appellate orders. It is hoped that the GST Council and authorities under the Central Goods and Service Tax Act/States Goods and Service Tax Act 2017 shall be sensitive enough to address genuine problems of the dealers including the problems being faced in giving effect to the orders of appellate authority, Tribunal and courts. Petition disposed off.
Issues:
1. Restoration of GST registration on the portal. 2. Levying late fees/penalty for late filing of returns. Issue 1: Restoration of GST registration on the portal The petitioner filed a writ petition seeking a mandamus to direct the respondents to act in accordance with the order revoking the cancellation of the GST registration and restoring it on the GST portal. The respondents were alleged to be acting arbitrarily and in defiance of their statutory duties. The respondents explained that the cancellation of registration occurred due to the death of one partner in a partnership firm and subsequent changes in the partnership. The appellate authority allowed the appeal for restoration of registration, but the actual restoration process was delayed due to lack of coordination between authorities, particularly the Director General in Chennai. The lack of action by the authorities was seen as obstructing the petitioner's business activities, potentially violating fundamental rights. The court directed the respondents to file counter affidavits and emphasized the importance of ensuring smooth business operations without harassment. Eventually, the registration was restored, and the court noted the development of a mechanism for restoration based on appellate orders to prevent such issues in the future. Issue 2: Levying late fees/penalty for late filing of returns The petitioner also sought a direction to prevent the imposition of late fees/penalties for late filing of returns from August 2021 to March 2022. The court expressed hope that with the restoration of registration, the authorities would ensure the petitioner faces no hurdles in fulfilling statutory compliances. It was observed that while a temporary mechanism existed for restoring cancelled registrations, a permanent mechanism was lacking until the issuance of a registration advisory in March 2022. This advisory introduced a functionality for the restoration of cancelled registrations based on appellate orders, aiming to facilitate the jurisdictional Range Officers in compliance with judicial decisions. The court directed the GST Council and authorities under the Central Goods and Service Tax Act to be sensitive to the issues faced by dealers and to circulate the advisory to ensure smooth implementation and prevent future obstacles for businesses. In conclusion, the writ petition was disposed of with the restoration of the GST registration and the implementation of a mechanism for restoration based on appellate orders to prevent similar issues in the future. The judgment highlighted the importance of coordination among authorities and the need to address genuine problems faced by dealers to uphold the ease of doing business and protect fundamental rights.
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