2023 (3) TMI 288 - HC - GST

Cancellation of GST registration of petitioner - It is the petitioner s case that he had been carrying on the business and had been filing his due returns from the date of the registration, however, had not filed the returns for certain period as its turnover for the said period was nil - petitioner failed to respond to the Show Cause Notice - HELD THAT - In a number of such case, this Court has held that the registration be restored to permit the taxpayer to file the returns while reserving the right of the respondents to cancel the registration if the petitioner does not cure the cause within a specified period. It is the petitioner s case that it had been unable to respond to the Show Cause Notice as he had been unwell. It is also noticed that the during the material time, the pandemic was raging and a number of persons were facing such difficulty. The respondents are directed to restore the registration to enable the petitioner to file all returns and pay taxes, interest and penalties, if any, in accordance with law - petition disposed off.

Summary

Issues:
1. Impugning an order cancelling GST registration
2. Failure to respond to Show Cause Notice
3. Restoration of registration and compliance requirements

Analysis:
The petitioner challenged an order dated 08.02.2023, rejecting their appeal against the cancellation of their GST registration (GSTIN 07AEHPA0518G1Z3) issued on 31.10.2021. The petitioner contended that although they had been conducting business and filing returns regularly, they had not filed returns for a specific period due to nil turnover. The respondent issued a Show Cause Notice on 01.07.2021, citing non-filing of returns for six consecutive months and subsequently suspended the registration. The petitioner claimed inability to respond or appear due to illness. Despite the petitioner's failure to respond, the concerned Officer cancelled the registration on 31.10.2021, with no tax or penalty interest determined. The petitioner's appeal was dismissed solely on the ground of being beyond the limitation period.

In similar cases, the Court has allowed restoration of registration to enable taxpayers to file returns, with a provision for cancellation if non-compliance persists. Considering the petitioner's health issues and the prevailing pandemic situation, the Court directed the restoration of registration for filing returns and payment of dues within four weeks. Failure to regularize the account within this period would empower the respondents to cancel the registration immediately. The order clarified that it does not restrict the respondents from taking further lawful actions as necessary.

Therefore, the petition was disposed of with the direction to restore registration, subject to compliance within the specified timeline, emphasizing the importance of adhering to legal requirements to maintain registration status.