2023 (6) TMI 51 - HC - GST

Cancellation of GST registration of petitioner - appeal rejected as time barred under section 107(1) and (4) of the CGST Act - failure to comply with the provisions of Section 29 (2) (b) (c) of the CGST Act - HELD THAT - Apparently, N/N. appears to be beneficial in nature as it provides a window of opportunity to all such registered persons whose registration were cancelled for non-compliance of the provisions of Section 29(2) (b) and (c) of CGST Act, 2017. Such registered persons may apply for revocation of cancellation of registration up to 30th June 2023, subject to filing of returns due upto the effective date of cancellation of registration and payment of any amount due as tax along with interest, penalty and late fee in respect of such returns. It is also made clear that no further window or extension of time period for filing application for revocation of cancellation of registration shall be available in such cases. The Explanation to the notification also indicates that the notification shall cover not only those persons who failed to apply for revocation of cancellation of registration within the time specified in Section 30 of the Act, but also those whose appeal against the order of cancellation of registration under Section 107 of the Act stood rejected or they failed to adhere to the time limit specified under sub-section (1) of Section 30 of the said Act to approach the Appellate Authority against the order rejecting application for revocation of cancellation of registration under section 107 of the Act. The petitioner falls in the category of cases where the appeal preferred against the cancellation of GST registration has been rejected under Section 107(1) and (4) of CGST Act as time barred. However, since the provision is beneficial in nature and appears to ameliorate the difficulty faced by such registered persons whose GST registration stood cancelled, the writ petition is disposed of with a direction to the petitioner to approach the proper officer with an application for revocation of cancellation of registration by 30th June 2023, as per the Notification dated 31.03.2023 after complying with the conditions prescribed thereunder. Petition disposed off.

Summary

Issues involved:
The judgment involves the cancellation of GST registration, the application for revocation of cancellation, and the applicability of Notification No. 03/2023 under the CGST Act.

Cancellation of GSTN Registration:
The petitioner sought quashing of the order of cancellation of GSTN registration, arguing that the show cause notice was invalid due to missing details. The petitioner also requested the revocation of the cancelled registration, stating that their business had come to a standstill due to the cancellation.

Applicability of Notification No. 03/2023:
The petitioner's counsel cited Notification No. 03/2023, which allowed registered persons to apply for revocation of cancellation of registration even if they had failed to do so within the prescribed time. The notification required the filing of returns and payment of any outstanding amounts, including tax, interest, penalty, and late fees.

Response of Respondent CGST:
The Respondent CGST acknowledged the notification and advised the petitioner to follow the prescribed conditions for seeking revocation of the cancelled registration. The CGST counsel mentioned that the appeal had been rejected as time-barred under the CGST Act.

Judgment and Disposition:
The court considered the submissions and highlighted the issuance of Notification No. 03/2023, which provided a window of opportunity for registered persons whose registrations were cancelled. The court directed the petitioner to approach the proper officer for revocation of cancellation by 30th June 2023, in compliance with the notification's conditions. The judgment emphasized that the impugned orders of cancellation would not hinder the consideration of the revocation application. Consequently, the writ petition was disposed of in favor of the petitioner.