2022 (9) TMI 1106 - HC - GST

Cancellation of registration of petitioner - petitioners have missed the bus in regard to several opportunities that were extended to them post-cancellation of the registrations by way of Amnesty Schemes - HELD THAT - The learned Judge has considered interim events including the position that Amnesty Schemes had not been availed by those petitioners. In fine, the learned Judge accepts the case of the petitioners, imposing certain conditions in para 229 of the order. A specific query was put to the State Counsel as to whether order dated 31.01.2022 has attained finality. He brings to my notice a communication that has been addressed by the Additional Chief Secretary/Commissioner of Commissioner of Commercial Tax to the GST Council on 31.03.2022 seeking the view of the Council and its guidance/directions in regard to the order of this Court dated 31.01.2022. There has been no response to the above communication and the State, like Samuel Beckett's Godot, has merely been waiting, much past the time for filing of writ appeal before this Court. In my view, this tantamounts to their having accepted the order of this Court dated 31.01.2022 as a conscious decision has been taken by the State to let the limitation slip. The petitioners are permitted to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid - Petition allowed.

Summary

Issues:
Challenge to cancellation of registrations under Tamil Nadu Goods and Services Tax Act, 2017 - Failure to avail opportunities under Amnesty Schemes - Remedies under Section 30 and appeal before Appellate Authority - Delay in availing remedies - Judicial review of cancellation orders - Implementation of directions from previous judgment.

Analysis:
The judgment addresses the challenge posed by all writ petitioners against the cancellation of their registrations under the Tamil Nadu Goods and Services Tax Act, 2017. The petitioners missed opportunities provided through Amnesty Schemes to restore their cancelled registrations. The Act offers two modes for revocation of cancellation: Section 30 remedy, which must be availed within thirty days from the cancellation order, and the appeal before the Appellate Authority, to be utilized within three months from the communication of the cancellation order. Most petitioners failed to utilize these remedies, except for a few who belatedly filed appeals accompanied by returns and admitted tax amounts.

One petitioner managed to avail the appellate remedy with a significant delay, while others approached the Court directly seeking restoration. A previous judgment considered similar cases and accepted the petitioners' arguments, imposing conditions for restoration. The State's delay in responding to a communication seeking guidance on the previous order was noted, with the Court interpreting it as an acceptance of the judgment. The State confirmed implementing the directions from the previous order for all petitioners, leading to the current judgment's directions being passed, effective immediately upon receipt.

The current judgment allows petitioners to file returns for the period before registration cancellation, pay defaulted taxes with interest and fines, and upon compliance, their registrations will be revived. The respondents are instructed to facilitate this process within forty-five days. The payment made for tax, penalty, etc., should not be adjusted from any unutilized Input Tax Credit. The respondents are directed to make necessary changes in the GST Web Portal to enable petitioners to file returns and make payments within the specified timeframe. Ultimately, the writ petitions are allowed with no costs, and connected miscellaneous petitions are closed.