2024 (9) TMI 162 - HC - GST

Revocation of GSTIN cancellation - whether the respondent authorities were justified in cancelling GST or not? - HELD THAT - The petitioner had applied for cancellation of GST No. 24ADHPC7739C3ZT and not GST No. 24ADHPC7739C1ZU. Therefore, the first affidavit dated 08th August, 2022 filed on behalf of the Respondent Department and Order-in-Original dated 10th May, 2024 appears to be correct one as the Department, due to some technical error/glitch, cancelled the GST No. 24ADHPC7739C1ZU instead of GST No. 24ADHPC7739C2ZT. From the details of GST Returns in Form GSTR-1 and GSTR-3B filed by the petitioner in the month of August, 2019 after revival of GST No. 24ADHPC7739C1ZU and the details of filing of the Returns by the petitioner under GST No. 24ADHPC7739C1ZU, it appears that the said GST number is confirmed by the respondent on 08th February, 2019 and could not have been cancelled - it is apparent from the record that the petitioner has never filed an application for cancellation of GST No. 24ADHPC7739C1ZU. The impugned action of the respondent authorities cancelling GST No. 24ADHPC7739C1ZU is hereby quashed and set aside. The cancellation order passed by the respondent authorities pertains to cancellation of GST No.24ADHPC7739C3ZT - Petition allowed.

Summary

Issues Involved:
1. Revocation of GSTIN cancellation
2. Activation of GSTIN for availing Input Tax Credit (ITC)
3. Quashing of orders dated 10th May 2024 and 2nd July 2024
4. Justification for cancellation of GSTIN due to technical glitch or voluntary application

Issue-wise Detailed Analysis:

1. Revocation of GSTIN Cancellation:
The petitioner filed a petition under Articles 226 and 227 of the Constitution of India seeking to revoke the cancellation of GSTIN 24ADHPC7739C1ZU. The petitioner argued that the GSTIN was cancelled due to a technical glitch and not due to any fault on their part. The court noted that the petitioner had initially applied for migration to the GST regime and was issued a provisional GSTIN, which was later cancelled due to the non-filing of Part B of the migration form. The court found that the cancellation was erroneous and directed the respondent authorities to activate the GSTIN.

2. Activation of GSTIN for Availing Input Tax Credit (ITC):
The petitioner required the activation of GSTIN 24ADHPC7739C1ZU to avail ITC on inputs and pay GST on output supplies. The court recognized the importance of the GSTIN for the petitioner's business operations, including the filing of returns and claiming ITC. The court directed the respondent authorities to activate the GSTIN to enable the petitioner to upload pending returns and pay requisite taxes, interest, and penalties.

3. Quashing of Orders Dated 10th May 2024 and 2nd July 2024:
The petitioner sought to quash the orders dated 10th May 2024 and 2nd July 2024, which provided contradictory reasons for the cancellation of the GSTIN. The court observed that the order dated 10th May 2024 cited a technical glitch as the reason for cancellation, while the order dated 2nd July 2024 stated that the petitioner had applied for cancellation. The court found that the petitioner had never filed an application for cancellation of GSTIN 24ADHPC7739C1ZU and thus quashed both orders.

4. Justification for Cancellation of GSTIN Due to Technical Glitch or Voluntary Application:
The court examined the justification provided by the respondent authorities for the cancellation of the GSTIN. The first affidavit dated 8th August 2022 and the Order-in-Original dated 10th May 2024 indicated that the cancellation was due to a technical glitch. The second affidavit dated 24th July 2024 and the Order-in-Original dated 2nd July 2024 suggested that the petitioner had voluntarily applied for cancellation. The court found that the petitioner had applied for the cancellation of a different GSTIN (24ADHPC7739C2ZT) and not the GSTIN in question (24ADHPC7739C1ZU). Therefore, the cancellation of GSTIN 24ADHPC7739C1ZU was unjustified.

Conclusion:
The court concluded that the cancellation of GSTIN 24ADHPC7739C1ZU was erroneous and directed the respondent authorities to activate the GSTIN within eight weeks. The court quashed the orders dated 10th May 2024 and 2nd July 2024 and instructed the respondent authorities to allow the petitioner to upload pending returns and pay requisite taxes, interest, and penalties. The petition was disposed of, and the notice was discharged.