2020 (4) TMI 496 - HC - GST

Cancellation of his GST Registration of petitioner - cancellation on the ground that petitioner had not filed GST return for more than six months - HELD THAT - The writ petition is disposed with liberty to the petitioner to make fresh representation to the Commissioner, CGST within four weeks from today along with an upfront amount of ₹ 30.00 lakh. If such a representation is made (along with aforesaid amount), the Commissioner, CGST shall consider petitioner s request for revocation of cancellation order, in accordance with law, within ten days from the date of receipt of such representation. Till decision is taken on petitioner s representation the impugned cancellation order dated 13.03.2020 shall be kept in abeyance. However, the GST registration of the petitioner shall be restored once the nationwide lockdown is over.

Summary

Issues:
1. Cancellation of GST Registration due to non-filing of returns for an extended period.
2. Dispute regarding tax liability and interest payment.
3. Application of Section 80 of CGST Act for payment in installments.
4. Directions for revocation of cancellation order and restoration of GST registration post lockdown.

Analysis:
The petitioner's GST Registration was canceled by the respondent due to non-filing of GST returns for an extended period. The respondent contended that the petitioner had defaulted in submitting returns for sixteen months and had a tax liability of ?1,48,01,516. On the other hand, the petitioner claimed to have cleared the tax liability up to February 2020, with the outstanding amount being towards interest for delayed payment of tax. The petitioner relied on Section 80 of the CGST Act, which allows for payment in installments, and expressed willingness to pay the entire amount in installments.

The court considered the submissions from both parties and directed the petitioner to make a fresh representation to the Commissioner, CGST within four weeks, along with an upfront amount of ?30.00 lakh. The Commissioner was instructed to review the request for revocation of the cancellation order within ten days of receiving the representation, keeping the cancellation order in abeyance until a decision was made. The court further ordered the restoration of the petitioner's GST registration post lockdown, ensuring that the registration would be reinstated once the nationwide lockdown was lifted.

In conclusion, the judgment provided a pathway for the petitioner to address the cancellation of GST registration by following the procedures outlined in Section 80 of the CGST Act, emphasizing the importance of timely payment and compliance with tax regulations while offering the opportunity for installment payments to resolve the outstanding tax liability.