2020 (10) TMI 899 - HC - GST

Seeking Direction to the respondents (GSTN) to make necessary changes in the portal so as to enable the petitioner to file returns - benefit of compouding scheme under new registration after cancellation of earlier registration - period from October 2018 to December 2018, January 2019 to March 2019, April 2019 to June 2019, July 2019 to September 2019, October 2019 to December 2019 and January 2020 to March 2020 - HELD THAT - Inasmuch as it is not in dispute that the petitioner had applied for a cancellation of its earlier registration as early as on 22.05.2018 and had applied for a new registration on 19.06.2018, the mere fact that the respondents took time to process the said applications, and pass orders thereon approving the cancellation application as also granting the new registration, cannot be a reason to treat the interim period as one in which the petitioner cannot get the benefit of the compounding scheme which he had opted through its application for new registration. The delayed processing of the application submitted by the petitioner cannot be a reason to deprive the petitioner of the statutory benefit that he had claimed through the application in question. This writ petition is allowed by directing the respondents to make the necessary changes in the portal so as to enable the petitioner to file the returns for the period aforementioned without charging the petitioner any late fee or other charges on account of the delay occasioned by the respondent - petition allowed.

Summary

Issues:
Delay in cancellation of earlier registration and granting new registration under GST Act causing hindrance in filing returns under the compounded scheme.

Analysis:
The petitioner, a partnership firm, approached the court due to delay by the respondent in cancelling the earlier registration and granting a new registration under the GST Act. The firm initially opted for tax payment on a normal basis but later applied for a fresh GST registration to opt for the compounded scheme for tax payment. The delay in processing the cancellation and new registration applications led to a situation where the firm could not upload returns under the compounded scheme. The petitioner sought a direction to enable filing returns without late fees for specific periods.

The respondent admitted the delay in approving the cancellation application, attributing it to delayed processing through their system. Despite the delay, it was acknowledged that the petitioner had applied for cancellation of the earlier registration on 22.05.2018 and for new registration on 19.06.2018.

The court considered the timeline of applications by the petitioner and held that the delayed processing by the respondents should not deprive the petitioner of the statutory benefit of the compounding scheme claimed through the new registration application. Consequently, the court allowed the writ petition, directing the respondents to make necessary portal changes for the petitioner to file returns without late fees for the specified periods. The respondents were given one month to facilitate return uploading and input tax credit availment, upon receipt of the judgment copy.

In conclusion, the court's judgment addressed the delay issue in processing the cancellation and new registration applications, ensuring that the petitioner could benefit from the compounding scheme without facing penalties for the delay caused by the respondent's processing delays.