2023 (10) TMI 484 - HC - GST

Maintainability of petition - availability of alternative remedy - Cancellation of GST registration of petitioner - HELD THAT - Admittedly, it is not in dispute that the petitioner no.1 was registered under the GST Act and GSTIN No.09BZAPK7818J1Z0 was granted to it, but due to unavoidable circumstances, the mother and sister of petitioner no.2 expired after prolonged serious illness due to which, the petitioner no.2 not only suffered financially but also mentally, due to which, the petitioner no.2 could not deposit the tax as well as filed is returns consecutively for for more than six months. Further, the petitioners in para 13 themselves mentioned and shows their will to deposit the entire dues along with interest. In the case in hand, the petitioner, in a peculiar circumstances, the petitioner no.2 could not deposit the amount of tax but the petitioner no.2, as stated above, is ready and willing to deposit the amount of tax. The respondent no.2 is directed to restore the registration of petitioner no.1 forthwith within a period of one week from the date of production of certified copy of this order. The petitioner no.2 is directed to deposit a sum of Rs. 6,00,000/-, after restoration of registration within a week - petition allowed.

Summary

Issues:
The judgment involves the cancellation of GST registration due to failure to file returns, mental exhaustion of the petitioner, alternative remedy of appeal, and the request for installment payment of tax dues.

Cancellation of GST Registration:
The petitioner's firm's registration was cancelled due to failure to file GST returns for six consecutive months. The petitioner no.2, the sole proprietor, faced mental and financial exhaustion after personal losses. The cancellation was challenged through a writ petition after the dismissal of a previous appeal. The petitioner expressed willingness to clear dues in installments.

Legal Precedents:
The petitioner cited judgments from Kerala High Court and Guwahati High Court supporting installment payment of tax dues in cases of financial hardship. These judgments emphasized the importance of acknowledging liability and the willingness to pay, allowing for installment plans beyond statutory limits.

Court's Decision:
The Court noted the exceptional circumstances faced by the petitioner and their readiness to clear dues. Relying on the legal precedents, the Court directed the restoration of the petitioner's registration within a week upon depositing a specified amount. The remaining dues were to be paid in six equal monthly installments. The writ petition was allowed with no costs imposed.