2024 (8) TMI 944 - HC - GST

Cancellation of GST registration - Default in GST payment due to financial crisis - HELD THAT - This Court is of the view that unless and otherwise the order impugned is set-aside, it is difficult for the petitioner to carry on the business and the State, will not be able to collect the revenues. On the other hand, if the registration is revoked, it will motivate the petitioner to do his business and to pay tax. Taking into consideration all the aspect, this Court is inclined to set-aside the order passed by the first respondent. Hence, the petitioner's GST registration stands restored. Accordingly, the third respondent is directed to restore the GST registration of the petitioner, so as to enable him to file all the returns as well as to remit all the statutory dues in accordance with law. The petition is disposed off.

Summary

Issues:
- Writ of Certiorarified Mandamus sought to quash cancellation of GST registration.
- Default in GST payment due to financial crisis.
- Delay in approaching the Court for relief.
- Restoration of GST registration and filing of outstanding returns and dues.

Analysis:

1. The petitioner, a film production company registered for GST, faced a financial crisis leading to default in GST payment for October 2022. Despite clearing dues later, the registration was canceled, prompting the petitioner to seek a Writ of Certiorarified Mandamus to quash the cancellation and direct revocation.

2. The petitioner argued that the financial crisis caused the default, and they committed to paying all dues promptly upon revocation of the cancellation. The respondent, however, highlighted the delay in addressing the issue, as the cancellation occurred in May 2023, but the petitioner approached the Court after over a year.

3. The Court acknowledged the financial difficulties faced by the petitioner, noting the payment of a substantial amount towards GST upon receiving partial payment. The Court emphasized the importance of maintaining the petitioner's registration to facilitate business operations and tax compliance.

4. Considering the circumstances and submissions, the Court set aside the cancellation order, thereby restoring the petitioner's GST registration. The third respondent was directed to reinstate the registration promptly to allow the petitioner to fulfill all statutory obligations within the specified timelines.

5. The judgment concluded by disposing of the Writ Petition without costs and closing the connected Miscellaneous Petition, ensuring the restoration of the petitioner's GST registration and the timely filing of outstanding returns and dues as per the Court's directives.