2022 (11) TMI 1186 - HC - GST

Cancellation of the Registration Certificate of petitioner - failure to file Goods and Services Tax monthly returns for a continuous period of six months - Section 29 of the Central Goods and Services Tax Act, 2017 - HELD THAT - In view of the fact that this Court has been consistently following the directions issued in the case of TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR. 2022 (2) TMI 933 - MADRAS HIGH COURT and the Revenue/Department has also accepted the said view as evident from the fact that no appeal has been filed in any of the matters, this Court intends to follow the above order of this Court. This Court feels that the benefit extended by this Court in the earlier orders referred to above in Suguna Cutpiece Centre's case cited supra, may be extended to the Petitioner - Petition disposed off.

Summary

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

Analysis:
The Writ Petition challenged the cancellation of the Registration Certificate based on the Petitioner's failure to file Goods and Services Tax monthly returns for a continuous period of six months. The cancellation was done under Section 29 of the Central Goods and Services Tax Act, 2017, effective from 31.12.2021. The Petitioner explained that the non-filing of returns was due to health issues. Despite this, the GST Registration was cancelled, and the Petitioner couldn't file for revocation in time.

In a similar case, the Court issued specific directions in the case of Tvl.Suguna Cutpiece, providing conditions for revocation. These conditions included filing returns for the period before cancellation, paying any tax defaulted with interest, fines, and fees, and not using any unutilized Input Tax Credit for payments. The Court also directed that any Input Tax Credit should be approved by the Department before utilization. The Petitioners were required to pay GST in cash for subsequent periods and follow strict guidelines to prevent misuse of Input Tax Credit.

Given the consistent application of the directions in previous cases, the Court decided to extend the same benefits to the Petitioner in this case. The judgment ordered the Writ Petition to be allowed on the terms mentioned in the earlier case of Suguna Cutpiece Centre, with no costs imposed. The decision was based on the established precedent and the acceptance of this view by the Revenue/Department, as evidenced by the absence of appeals in similar matters.

In conclusion, the Court relied on past judgments and established guidelines to provide relief to the Petitioner in challenging the cancellation of their Registration Certificate due to non-filing of GST returns. The decision was made in line with previous directions issued by the Court to ensure compliance with tax regulations and prevent misuse of Input Tax Credit.