2023 (4) TMI 584 - HC - GST

Cancellation of GST registration of petitioner - failure to file Goods and Services Tax monthly returns for a continuous period of six months - HELD THAT - This Court has been consistently following the directions issued in the case of Tvl. Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and Others 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, may be extended to the Petitioner. Petition disposed off.

Summary

Issues:
Challenge to cancellation of Registration Certificate due to failure to file Goods and Services Tax monthly 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 a continuous period of six months. The cancellation was effected under Section 29 of the Central Goods and Services Tax Act, 2017, with an effective date of 10.01.2022. The Petitioner cited health issues as the reason for not filing the returns and mentioned receiving a show cause notice on 30.12.2021, followed by the cancellation order on 10.01.2022. The Petitioner could not file an application for revocation in time, leading to the current challenge.

Both counsels for the Petitioner and Respondent referred to a previous judgment by the Court in the case of Tvl. Suguna Cutpiece, where specific directions were issued in similar circumstances. These directions included requirements for filing returns, payment of defaulted tax with interest, restrictions on utilizing Input Tax Credit, scrutiny of Input Tax Credit utilization, payment of GST in cash for subsequent periods, and necessary changes in the GST Web portal architecture. The Court noted that the Revenue/Department had not appealed against this judgment in other cases, indicating acceptance of the Court's view.

Given the consistent application of the directions from the Tvl. Suguna Cutpiece case in subsequent judgments, the Court decided to extend the same benefit to the current Petitioner. The Court ordered the Writ Petition to be resolved based on the terms outlined in the earlier judgment, without imposing any costs on the Petitioner. The decision reflects the Court's adherence to established precedent and the principles laid down in previous cases related to GST registration cancellation and revocation processes.