2024 (3) TMI 780 - HC - GST

Dismissal of the petition under section 107 of the Central Goods and Services Tax Act, 2017 - Seeking to avail the option under section 30 of the GST Act for revocation of the cancellation of registration - appeal dismissed on the ground of time limitation - HELD THAT - Section 39 of the GST Act provides that every registered person other than an input service distributor or a non-resident taxable person shall for every calendar month or part thereof furnish a return of inward and outward supply of goods and service. There are other requirements/ stipulations under section 39 which every registered person/Firm is required to comply. Section 45 provides a window to the registered person/Firm for restoration of the registration by allowing/furnishing of a final return within three months from the date of the cancellation or from the date of the order of cancellation whichever is later. Under section 30, any registered person whose registration is cancelled may apply for revocation of cancellation of registration in the prescribed manner. The primary object behind the GST Act is levy and collection of tax on intra State supply of goods or services and the matters connected therewith or incidental thereto. Now the cancellation of registration shall ensue serious civil consequences for the petitioner and his entire business shall come to a standstill. The provisions under sections 30, 45, 46, 47 etc. are intended at providing opportunity to the defaulter Firm so as the Firm continues its business. Therefore, a liberal approach is required to be taken in the matters like the present proceeding notwithstanding the period prescribed under section 30 of the GST Act having been lapsed - a permission to the petitioner to file an application under section 30 of GST Act can be granted subject to the petitioner making payment of dues and other statutory penalty/fine for moving the application under section 30 of the GST Act. The present writ petition succeeds to the extent that the petitioner may file an application under section 30 of the GST Act within a period of 30 days and the period of limitation shall be counted from the date of this order - Petition allowed.

Summary

Issues involved:
The issues involved in the judgment are the dismissal of a petition under section 107 of the Central Goods and Services Tax Act, 2017 and seeking revocation of the cancellation of registration under section 30 of the GST Act.

Dismissal of Petition under Section 107:
The petitioner, a proprietor of a firm registered under the GST Act, filed a writ application seeking to quash the order rejecting the appeal due to being filed after the limitation period. The appeal was dismissed as it was barred by limitation.

Cancellation of GST Registration:
The petitioner's GST registration was canceled for failure to furnish returns for six months, leading to the filing of an appeal under section 107 of the GST Act, which was rejected. The petitioner cited a notification extending the time for revocation application till June 30, 2023, due to pending appeal.

Legal Provisions and Considerations:
Section 39 of the GST Act mandates monthly return filing, with section 45 allowing restoration of registration by filing a final return within three months of cancellation. Section 30 permits a registered person to apply for revocation of cancellation. The court noted the civil consequences of cancellation and the provisions aimed at providing opportunities for defaulters to continue business.

Court Decision:
The court acknowledged the need for a liberal approach despite the lapse of the period prescribed under section 30. It granted permission to the petitioner to file an application under section 30 of the GST Act within 30 days, subject to payment of dues and penalties. The writ petition was allowed to that extent, with the limitation period starting from the date of the court's order.