2023 (12) TMI 1337 - HC - GST

Direction to the respondent to restore the petitioner's GST Registration - HELD THAT - It appears that the present issue was already covered by the aforesaid judgement of this Court in W.P. No. 25048 of 2021 2022 (2) TMI 933 - MADRAS HIGH COURT where it was held that 'Therefore, if such a person is not allowed to revive the registration, the GST will not be paid, unless of course, the recipient is liable to pay tax on reverse charge basis. Otherwise, also there will be no payment of value added tax. The ultimate goal under the GST regime will stand defeated. Therefore, these petitioners deserve a right to come back into the GST fold and carry on their trade and business in a legitimate manner.' This Court is inclined to allow this petition - it is made clear that if the petitioner is liable to pay any tax or penalty, he is required to pay the same in accordance with law - Petition allowed.

Summary

Issues:
Challenging proceedings of the 1st respondent and seeking direction to restore GST Registration.

Analysis:
The petitioner filed a writ petition challenging the proceedings of the 1st respondent dated 12.09.2023 and requested the restoration of the petitioner's GST Registration. The learned Senior Standing Counsel for the respondent acknowledged the petition, and by mutual agreement, the main writ petition was taken up for disposal at the admission stage. The petitioner's counsel argued that the issue was previously addressed in a judgment of the court in W.P. No. 25048 of 2021 dated 23.09.2021, where a similar writ petition was allowed. The respondent's counsel, in response, suggested that an appropriate order be passed by the court considering the facts of the case. The court heard both parties and reviewed the available records.

The court noted that the issue at hand had already been addressed in a previous judgment of the court in W.P. No. 25048 of 2021. The court cited relevant portions of the judgment, highlighting the extension of limitation periods due to the impact of various orders, including those by the Hon'ble Supreme Court. The court emphasized the importance of allowing individuals like the petitioner to file fresh applications for revocation of the cancellation of registration, in line with the intentions of the Government and the GST enactments. The court stressed that barring such individuals from the GST regime would not only lead to revenue leakage but also hinder the objectives of the GST enactments.

The court further elaborated on the necessity of integrating individuals back into the GST fold to ensure proper tax collection and prevent potential tax evasion. It emphasized that preventing individuals from reviving their registration would only strain the system and lead to revenue loss for the Government, contrary to the intended purpose of the GST enactments. The court highlighted the safeguards available under the GST enactments to prevent abuse and ensure compliance, stating that individuals could still be held accountable even after registration revival.

Ultimately, the court decided to allow the writ petition, setting aside the proceedings dated 12.09.2023 and directing the 1st respondent to restore the petitioner's GST registration. The court clarified that if the petitioner is liable to pay any tax or penalty, it must be done in accordance with the law. The court concluded by stating that no costs were awarded, and the connected Miscellaneous Petition was closed.