2021 (12) TMI 890 - HC - GST

Revocation of cancellation of registration - revocation being considered/rejected on the ground that they have not been made within the time prescribed - contention of learned counsel for the petitioner is that this is an erroneous reading of N/N. 34 of 2021 dated 29.08.2021 - Section 30 of the Central Goods and Services Tax, Act 2017 - HELD THAT - The interpretation sought to be placed by learned counsel appearing for respondents is unduly restricted. It cannot be lost site of that this notification was issued in view of the Covid pandemic, wherein even the Supreme Court had passed a blanket order of extending the period of limitation. Once the petitioners had already been granted benefit of the notifications dated 23.04.2019 (Annexure P-6), dated 25.06.2020 (Annexure P-7) and dated 29.08.2021 (Annexure P-10), the time limit for making such application should have extended up to the 30th day of September, 2021. These writ petitions are allowed and it is directed that in case these petitioners now move an application for revocation of cancellation (if necessary, manually) within a period of 30 days from the date of receipt of certified copy of this order, the same would be deemed to be within limitation and would have to be decided in accordance with law on merits.

Summary

Issues:
1. Consideration of applications for revocation of cancellation of registration under the Central Goods and Services Tax Act, 2017.
2. Interpretation of notifications regarding the time limit for filing applications for revocation of cancellation of registration in light of the Covid-19 pandemic.

Analysis:
Issue 1:
The petitioners raised concerns that their applications for revocation of cancellation of registration were not being processed due to not meeting the time limit prescribed under Section 30 of the CGST Act. The cancellation orders were issued due to failure to file returns, but later, Amnesty Schemes were introduced recognizing the challenges faced by taxpayers under the new GST regime. Notifications were issued, including one on 23.04.2019, allowing those affected to file for revocation by a specified date. Subsequently, another notification on 25.06.2020 clarified the period for filing applications. Due to the Covid-19 pandemic, a further extension was granted through a notification on 29.08.2021. The petitioners argued they were entitled to the extended limitation period and could file their applications by 30th September 2021.

Issue 2:
The respondents contended that the extension granted through the notification of 29.08.2021 applied only to cases where cancellation orders were issued between 01.03.2020 to 31.08.2020. However, the court disagreed with this narrow interpretation. Considering the impact of the pandemic and the previous notifications providing relief, the court held that the time limit for filing applications should be extended until 30th September 2021 for all affected parties. The court allowed the writ petitions, directing the petitioners to submit their applications for revocation within 30 days from the date of the order, ensuring they are considered within the extended time frame and in accordance with the law.

In conclusion, the High Court of Punjab and Haryana granted relief to the petitioners, emphasizing the importance of considering the challenges faced by taxpayers, especially during extraordinary circumstances like the Covid-19 pandemic. The judgment underscored the need for a broader interpretation of notifications to ensure fairness and justice in matters related to the revocation of cancellation of registration under the CGST Act.