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2022 (11) TMI 485 - HC - GST


Issues:
Challenge to cancellation of Registration Certificate due to failure to file GST returns for six months

Analysis:
The Writ Petition challenges the cancellation of the Registration Certificate based on the petitioner's failure to file Goods and Services Tax monthly returns for six consecutive months. The cancellation was carried out in accordance with Section 29 of the Central Goods and Services Tax Act, 2017. The petitioner's counsel argued that the proprietor's severe illness, specifically due to COVID-19, resulted in his inability to file an appeal within the required timeframe following the cancellation.

In a similar case, Tvl.Suguna Cutpiece vs. The Appellate Deputy Commissioner (ST) (GST) and others, the court issued specific directions. These directions included the requirement for petitioners to file returns for the period before the cancellation, pay defaulted taxes with interest, and fines for late payments within 45 days. The court also emphasized that such payments should not be made from unutilized Input Tax Credit and must be approved by the competent authority before utilization.

The court noted that it has consistently followed the directions issued in the Tvl.Suguna Cutpiece case in subsequent decisions involving tax-related matters. Given the acceptance of this approach by the Revenue/Department, as evidenced by the absence of appeals against such decisions, the court decided to extend the benefit to the petitioner in this case. Consequently, the court ordered the Writ Petition to be decided on the same terms as mentioned in the Tvl.Suguna Cutpiece case, with no additional costs incurred by the petitioner.

In conclusion, the court's decision was based on the precedent set in previous cases, emphasizing the importance of compliance with tax regulations while also considering extraordinary circumstances such as severe illness impacting a taxpayer's ability to meet deadlines. The judgment reflects a balance between upholding tax laws and providing reasonable accommodations in deserving cases.

 

 

 

 

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