2021 (9) TMI 518 - HC - GST

Revocation of cancellation of registration of the petitioner - non-filing of the return for a continuous period of six months - grant of benefit of amnesty scheme - HELD THAT - The registration of the petitioner came to be cancelled after issuing show-cause notice. The reason for cancellation of registration as found in the order is suo motu cancellation due to non-filing of returns. It appears that the petitioner-Company had filed an application for revocation of cancellation of registration. But, that application was also rejected as it was filed after 90 days of the order cancelling registration of the petitioner. The petitioner had remedy of challenging cancellation of registration by filing an appeal which it has not availed. The cancellation of registration was on 14.01.2019 and that order has attained finality - the petitioner cannot be heard to say that as now the amnesty scheme as framed by the Government and as the petitioner wants to avail the benefit of that Amnesty Scheme, the registration which was cancelled needs to be revoked - Petition dismissed.

Summary

Issues: Registration cancellation under the CGST Act, application for revocation, defect in software affecting revocation, benefit of amnesty scheme, delay in challenging cancellation.

Registration Cancellation under the CGST Act:
The petitioner's registration under the CGST Act was cancelled due to non-filing of returns for a continuous period of six months. The cancellation was done after issuing a show-cause notice, and the reason for cancellation was recorded as suo motu cancellation due to non-filing of returns. The petitioner had filed an application for revocation of the cancellation, but it was rejected as it was filed after 90 days of the order cancelling registration.

Defect in Software Affecting Revocation:
The petitioner claimed that the respondents did not revoke the cancellation of registration due to a defect in the software maintained by them. This defect prevented the petitioner from benefiting from the amnesty scheme offered to taxpayers under the CGST Act, enabling them to furnish returns by a specified date with waived fees and penalties.

Benefit of Amnesty Scheme:
The petitioner argued that they were unable to avail the benefit of the amnesty scheme due to the cancellation of registration. The scheme allowed taxpayers to furnish returns by a specific date with waived fees and penalties. However, the petitioner's registration cancellation prevented them from benefiting from this scheme.

Delay in Challenging Cancellation:
The court noted that the petitioner had the remedy of challenging the cancellation of registration by filing an appeal, which they did not avail. The order cancelling registration had attained finality as the petitioner did not challenge it within the prescribed timeline. The court emphasized that the petitioner had delayed in filing an application for revocation of registration and in approaching the court, rendering the petition devoid of merit. The court dismissed the petition, stating that the petitioner could not claim the revival of registration to benefit from the amnesty scheme after sleeping over their rights following the cancellation.