2022 (8) TMI 277 - HC - GST

Cancellation of Registration Certificate of petitioner - Non-payment of interest, late fee, penalty and in-eligible credit of Input Tax Credit - HELD THAT - This Court is of the opinion that the Opposite Parties are required to facilitate the Petitioner to file GST return(s) by opening the Portal. In exercise of powers under Section 30 of the CGST Act, 2017 read with Rule 23 of the Central Goods and Services Tax (CGST) Rules, 2017 the Proper Officer shall revoke the order of cancellation of Registration Certificate. Subject to verification of payments made as asserted in the writ petition by the Proper Officer, the authority concerned is required to pass necessary orders revoking the cancellation of Registration Certificate and allow the Petitioner to file returns within a period of two weeks from the date of production of certified copy of this Order. The writ petition is disposed of.

Summary

Issues:
Challenge to communication indicating non-payment of interest, late fee, penalty, and ineligible credit of Input Tax Credit for the period from July 2017 to January 2021. Compliance with court directions regarding depositing taxes, interest, late fee, and penalty. Failure of Opposite Parties to comply with court direction to enable filing of GST return. Discrepancy in the period of non-payment mentioned in communication. Request for revocation of order of cancellation of Registration Certificate and facilitation of filing returns by Proper Officer.

The Petitioner challenged a communication indicating non-payment of interest, late fee, penalty, and ineligible credit of Input Tax Credit for the period from July 2017 to January 2021 through a writ petition invoking Article 226 of the Constitution of India. Previously, the Petitioner had moved the Court against the order of cancellation of Registration Certificate under the Central Goods and Service Tax Act, 2017, which was disposed of with directions to comply with tax requirements. The Petitioner deposited the required amounts as per court directions, but the Opposite Parties failed to facilitate filing of GST returns as directed, leading to non-compliance with court orders.

The Petitioner urged compliance with the court's directions based on the statement of the Senior Standing Counsel. However, the Opposite Parties did not enable the Petitioner to file GST returns as directed by the Court. The Petitioner highlighted a discrepancy in the communication, mentioning non-payment from July 2017 to January 2021, while the previous order related to the period from July 2019 to September 2019. The Court, after hearing arguments, directed the Proper Officer to revoke the order of cancellation of Registration Certificate and allow the Petitioner to file returns within two weeks upon verification of payments made as per the writ petition.

The Court, in the exercise of powers under the CGST Act, 2017 and CGST Rules, directed the Proper Officer to facilitate the Petitioner in filing GST returns by revoking the cancellation of Registration Certificate. The Court emphasized the need for the Opposite Parties to comply with court directions and allow the Petitioner to file returns promptly. The writ petition was disposed of with the mentioned directions and observations, emphasizing the importance of compliance with court orders and facilitating the Petitioner in fulfilling tax obligations.