2022 (12) TMI 1132 - HC - GST

Cancellation of GST registration of petitioner - failure to furnish returns for a continuous period of six months - HELD THAT - Since, the petitioner failed to furnish returns for a continuous period of six months and show cause notice has been sent to him, it is directed that the petitioner shall file an application for revocation under Section 30 of the GST Act in terms of Rule 23 of the GST Rules. Though it is time barred, we are inclined to wave the limitation and direct the petitioner to file application for revocation within 21 days hence. He shall also comply the other provision of Section 30 of the Uttarakhand GST Act, i.e, submission of returns for the defaulted six months and any further completed months after the revocation. In such case if dues is found to be due from the petitioner and he pays the same than his case shall be considered liberally by the revenue and shall be dispose of within 15 days. Application disposed off.

Summary

Issues:
1. Quashing of GST registration cancellation order
2. Filing application for revocation of GST registration cancellation
3. Compliance with GST rules and submission of returns
4. Extension of time for filing application for revocation
5. Consideration of livelihood impact on employees

Quashing of GST Registration Cancellation Order:
The petitioner sought a writ to quash the cancellation of GST registration order, expressing readiness to pay all outstanding tax, interest, and late fees. The Court acknowledged the strict appeal laws, emphasizing the impact on the petitioner's livelihood as a semi-skilled laborer. Denial of GST registration affected the petitioner's ability to secure employment and execute work, violating the right to livelihood under Article 21 of the Constitution.

Filing Application for Revocation of GST Registration Cancellation:
The petitioner, conducting business as M/s Anand Prasad in civil contractor services, was directed to file an application for revocation under Section 30 of the Uttarakhand GST Act. The revenue counsel highlighted the necessity for the petitioner to file appropriate returns for the past six months as per Rule 23 of the Uttarakhand GST Rules, 2017.

Compliance with GST Rules and Submission of Returns:
Due to the petitioner's failure to submit returns for six consecutive months, a show cause notice was issued. The Court directed the petitioner to file the revocation application within 21 days, waiving the time limitation. Additionally, the petitioner was instructed to submit returns for the defaulted months and any subsequent completed months post-revocation. Compliance with these provisions was deemed essential for consideration by the revenue department.

Extension of Time for Filing Application for Revocation:
Despite the time-barred nature of the application, the Court extended the deadline for filing the revocation application to 21 days. The petitioner was urged to fulfill the requirements of Section 30 of the Uttarakhand GST Act, including the submission of outstanding returns. Any dues identified were to be promptly settled for a liberal consideration by the revenue department, with a commitment to expedite the case within 15 days.

Consideration of Livelihood Impact on Employees:
The judgment emphasized the potential impact on the livelihood of individuals employed by the petitioner's company. The Court's decision to grant an extension and provide directives aimed to safeguard the interests of those dependent on the petitioner's business. No costs were imposed in the final order.

This detailed analysis of the judgment addresses the various issues involved and the Court's considerations in resolving the matter concerning the petitioner's GST registration cancellation and subsequent application for revocation.