2021 (4) TMI 322 - Commissioner - GST

Revocation of cancellation of registration of petitioner - rejection of application due to non-submission of reply to the SCN within the time specified therein - Rule 23 of the CGST Rules, 2017 - HELD THAT - Where the proper officer is satisfied, for reasons to be recorded in writing, that there are sufficient grounds for revocation of cancellation of registration, he shall revoke the cancellation of registration by an order in FORM GST REG-22 within a period of thirty davs from the date of the receipt of the application and communicate the same to the applicant - The proper officer may, for reasons to be recorded in writing, under circumstances other than those specified in clause (a), by an order in FORM GST REG-05 reject the application for revocation of cancellation of registration and communicate the same to the applicant. Central Board of Indirect Taxes Customs, New Delhi has clarified the issue vide Circular No. 99/18/2019-GST, dated 23-4-2019 has clarified that where the registration has been cancelled with effect from the date of order of cancellation of registration, all returns due till the date of such cancellation are required to be furnished before the application for revocation can be filed. Further, in such cases, in terms of the second proviso to sub-rule (1) of rule 23 of the said Rules, all returns required to be furnished in respect of the period from the date of order of cancellation till the date of order of revocation of cancellation of registration have to be furnished within a period of thirty days from the date of the order of revocation. The appellant has now been complied with the above said provisions, therefore, the registration of appellant may be considered for revocation by the proper officer - appeal disposed off.

Summary

Issues:
Revocation of GST registration due to non-filing of returns for a continuous period of six months, rejection of application for revocation of cancellation of registration, compliance with relevant provisions and circulars, revocation of cancellation of registration.

Revocation of GST Registration:
The appeal was filed under Section 107 of the Central Goods and Services Tax Act, 2017 against the cancellation of GSTIN due to non-filing of returns for six months. The appellant requested revocation of GST registration after being unable to file returns post-cancellation. During the virtual personal hearing, the appellant's representative highlighted that all returns up to June 2020 were filed, along with payment of tax, penalty, and interest. The adjudicating authority rejected the application for revocation as the appellant did not reply to the show cause notice within the specified time.

Compliance with Provisions:
The appellant had applied for revocation of registration twice, but both applications were rejected. The appellant submitted returns up to June 2020 and GSTR-1 up to March 2020. The relevant provisions under Rule 23 of the CGST Rules, 2017 were discussed, emphasizing the requirements for revocation of cancellation of registration. The circular issued by the Central Board of Indirect Taxes & Customs clarified the conditions for filing a revocation application post-cancellation due to non-filing of returns.

Judgment and Order:
After reviewing the case records, written submissions, and oral arguments, the Commissioner found that the appellant had now complied with the necessary provisions. The Commissioner ordered the appellant to file the revocation application through the common portal. The proper officer was directed to consider the revocation application upon verification of payment details, return filings, and compliance with the CGST Act and rules. Consequently, the appeal was disposed of in favor of the appellant, allowing for the consideration of revocation of the GST registration.

This detailed analysis of the judgment highlights the issues of revocation of GST registration, compliance with legal provisions, and the final order for the revocation application to be considered by the proper officer.