2024 (8) TMI 1439 - HC - GST

Seeking revocation of cancelled GST registration - no business for twelve months on account of resurgence of the COVID 19 pandemic - non-filing of returns - HELD THAT - The reason set out in the order of cancellation is non filing of returns for a continuous period of more than twelve months. In Suguna Cutpiece 2022 (2) TMI 933 - MADRAS HIGH COURT , this Court directed restoration of GST registration subject to several terms and conditions. The said judgment was followed thereafter in many cases. In the present case also, the restoration of the GST registration is directed subject to and conditional upon fulfilling the conditions imposed - petition disposed off.

Summary

Issues:
1. Challenge of order of cancellation of GST registration and seeking revocation.
2. Non-filing of returns for more than twelve months due to COVID-19 pandemic.
3. Compliance with conditions for restoration of GST registration.

Analysis:
The petitioner challenged the cancellation of her GST registration, citing the impact of the COVID-19 pandemic on her business operations. The petitioner had not filed returns for twelve months due to the pandemic, leading to the cancellation order. The petitioner argued that taxes were paid until November 2020 but faced difficulties in filing returns thereafter. The petitioner sought restoration of registration based on a previous judgment in Suguna Cutpiece case, which directed restoration subject to specific conditions.

The Government Advocate representing the respondent accepted notice and pointed out that the judgment in Suguna Cutpiece was conditional, requiring the petitioner to fulfill all stipulated conditions for restoration. The cancellation order was based on the continuous non-filing of returns for over twelve months. The court noted that the judgment in Suguna Cutpiece had set a precedent for restoration of GST registration with specific terms and conditions, which had been followed in subsequent cases for consistency.

The court referred to the directions issued in the Suguna Cutpiece judgment, outlining various conditions for restoration of GST registration. These conditions included filing returns for the period prior to cancellation, payment of tax dues with interest and fees, restrictions on utilizing unclaimed Input Tax Credit, scrutiny and approval of Input Tax Credit by competent officers, declaration of correct value of supplies, and other procedural requirements. The court emphasized that the restoration of GST registration was contingent upon the petitioner fulfilling all the specified conditions within the prescribed timelines.

Consequently, the court disposed of the writ petition in line with the conditions set out in the Suguna Cutpiece judgment, without imposing any costs. The connected miscellaneous petitions were also closed as a result of the judgment. The restoration of GST registration was subject to the petitioner's compliance with the specified conditions, ensuring consistency with previous decisions in similar cases.