2024 (6) TMI 827 - HC - GST

Cancellation of registration for non-payment of interest - seeking to avail the option under section 30 of the GST Act for revocation of the cancellation of registration - 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 one. 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 Rs.6, 19, 258.85 and other statutory penalty/fine for moving the application under section 30 of the GST Act. The payment of Rs. 6, 19, 258.85 on account of interest shall be without prejudice to the rights of the petitioner and the same shall remain open to challenge by the petitioner in a separate proceeding laid by the petitioner if so advised within 30 days. Petition allowed.

Summary

Issues involved: Cancellation of GST registration for non-payment of interest, seeking revocation u/s 30 of GST Act, proper adjudication proceedings for interest payable.

The petitioner, a proprietor of a registered Firm, had their GST registration cancelled for failure to furnish returns. The petitioner approached the Court seeking revocation of the cancellation u/s 30 of the GST Act. The petitioner contended that the demand for interest without adjudication and in breach of natural justice was improper. The respondent argued that the time limits for filing applications or appeals had lapsed, thus no indulgence should be granted.

The Court noted the provisions under sections 39, 45, and 30 of the GST Act, emphasizing the opportunity for restoration of registration and revocation of cancellation. The Court recognized the serious consequences of registration cancellation on the petitioner's business and highlighted the need for a liberal approach in such matters to allow the business to continue.

After examining the case, the Court granted permission to the petitioner to file an application u/s 30 of the GST Act upon payment of interest and other penalties. The Court allowed the petitioner to challenge the interest payment in a separate proceeding within 30 days. The Court found in favor of the petitioner, allowing them to file the application within 30 days from the date of the order, ensuring the continuation of the business.

Separate Judgment: W.P(T) No.5444 of 2023 is allowed for the petitioner to file an application under section 30 of the GST Act within 30 days from the date of the order.