2022 (4) TMI 979 - HC - GST

Revocation of cancellation of GST registration of petitioner - alleged non-filing of the return - HELD THAT - The issue raised in this writ petition has already been dealt with by a detailed judgment of this Court in a batch of cases in the matter of TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR 2022 (2) TMI 933 - MADRAS HIGH COURT where it was held that Since, no useful will be served by not allowing persons like the petitioners to revive their registration and integrate them back into the main stream, the impugned orders are liable to be quashed and with few safeguards. The present case also can be fit in under the said category, where what are all the direction given by the learned Judge in the case in Tvl.Suguna Cutpiece Center, can be applied to the present case and therefore, the said benefit can be extended to the present petitioner also. Petition disposed off.

Summary

Issues:
Cancellation of GST registration for alleged non-filing of returns.

Analysis:
The petitioner, a dealer under the GST regime, had their registration cancelled by the respondent for alleged non-filing of returns. The writ petition sought a writ of certiorari to quash the cancellation order. The issue was whether the cancellation was justified.

The High Court referred to a detailed judgment in a batch of cases related to similar issues. In that judgment, the court allowed the writ petitions subject to certain conditions. The conditions included filing returns for the period prior to cancellation, payment of defaulted tax with interest, and fines for belated filing. The court also restricted the use of unutilized Input Tax Credit and required scrutiny and approval for its utilization.

The court directed that approved Input Tax Credit could be used for discharging future tax liabilities. It also mandated the payment of GST in cash for subsequent periods post-cancellation. The court imposed restrictions to prevent undue passing of Input Tax Credit and prohibited bill trading. Upon compliance with tax payment, penalty, and return filing, the registration would be revived immediately.

Applying the principles laid down in the referenced judgment to the present case, the High Court disposed of the writ petition in line with the directions given by the previous judge. The petitioner was granted the same benefits as outlined in the earlier judgment. The writ petition was ordered accordingly, with no costs imposed, and connected miscellaneous petitions were closed.