2024 (4) TMI 212 - HC - GST

Cancellation of registration of Firm - failure to furnish the returns for a continuous period of six months - seeking to avail the option under section 30 of the Central Goods and Services Tax Act, 2017 - HELD THAT - 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. Having thus examined the materials on record, it is opined that 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 statutory penalty/fine, if any, 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.

Summary

Issues involved:
The cancellation of registration of a Firm under the Central Goods and Services Tax Act, 2017 and seeking revocation of the cancellation of registration.

Summary:
The petitioner, as the proprietor of a construction firm, had his GST registration cancelled for failure to furnish returns for six months. The petitioner sought relief from the High Court to quash the cancellation order and revive the registration. The petitioner argued that due to a Notification extending the deadline for revocation applications, he should be allowed to apply for revocation despite missing the initial deadline. The petitioner had paid the tax liability and filed necessary documents. The GST Department contended that the time limit for filing revocation applications had passed. The Court noted the provisions of the GST Act allowing for revocation of registration and restoration of business activities. Despite the lapsed time limit, the Court granted permission for the petitioner to file a revocation application within 30 days, subject to payment of any statutory penalties. The writ petition was allowed in favor of the petitioner to this extent.

Separate Judgment:
None.