2021 (9) TMI 961 - Commissioner - GST

Cancellation of registration of petitioner - non filing of GSTR returns for a continuous period of six months - revocation of cancellation of registration has been also rejected due to that the applicant has not submitted the DRC-03 for the due Interest on delayed payment for the period May to December-2020 - HELD THAT - The appellant has filed returns upto date of cancellation of registration hence, it is found that the appellant has substantially complied with the provisions of the CGST Act/Rules, 2017 in the instant case. Therefore, the registration of appellant may be considered for revocation by the proper officer. Appeal allowed - decided in favor of appellant.

Summary

Issues:
- Cancellation of GST registration due to non-filing of returns
- Rejection of application for revocation of cancellation
- Compliance with provisions of CGST Act/Rules

Cancellation of GST registration due to non-filing of returns:
The case involved the cancellation of GST registration of a trading company due to non-filing of returns for a continuous period of six months. The Proper Officer had also rejected the application for revocation of cancellation as the applicant had not submitted the DRC-03 for the due interest amounting to ?2,460 on delayed payment for the period May to December 2020. The appellant, aggrieved by the decision, filed an appeal under Section 107 of the CGST Act, 2017, stating that the GST number was canceled due to non-timely filing of returns and failure to respond to the Show Cause Notice.

Rejection of application for revocation of cancellation:
The appellant submitted all pending returns with due tax and late fees up to the date of cancellation and applied for revocation. The appeal included a personal hearing where the Authorized Representative highlighted that all returns had been filed, and government dues were paid up to the cancellation date. The Additional Commissioner found that the application for revocation was rejected due to non-payment of interest for the period May to December 2020 and the delay in filing the application after the cancellation.

Compliance with provisions of CGST Act/Rules:
The Additional Commissioner referred to Rule 23 of the CGST Rules, 2017, which outlines the process for revocation of cancellation of registration. The appellant had submitted necessary documents, including DRC-03 for interest payment, challans for tax and late fee, and GSTR-3B returns for the relevant period. The Commissioner noted that the appellant had substantially complied with the provisions of the Act and Rules by filing returns up to the date of cancellation. Based on this, the appeal was allowed, and the Proper Officer was directed to consider the revocation application after verifying payment particulars and return status.

This detailed analysis of the judgment showcases the issues surrounding the cancellation of GST registration, the rejection of the revocation application, and the compliance with the provisions of the CGST Act/Rules, leading to the final decision in favor of the appellant.