2023 (2) TMI 726 - HC - GST

Cancellation of registration of petitioner - It is the contention of the petitioner that the respondent no.3 has issued a show cause notice on 11.08.2022 for non-furnishing of the returns for a period of six months - HELD THAT - This court is of the view that the respondent authority shall give an opportunity to the petitioner to submit his return for the period the show cause notice dated 11.08.2022 was issued. Further, the respondents are directed to release the GST portal which they have blocked relating to the petitioner. The respondents are at liberty to proceed in the matter in accordance with law. The petition is disposed off.

Summary

Issues:
Petitioner's prayer for writ reliefs including cancellation of show cause notice, suspension of registration under GST Act, and revocation of suspension. Allegation of financial losses due to registration suspension. Dispute over non-filing of returns leading to suspension.

Analysis:

Cancellation of Show Cause Notice and Suspension of Registration:
The petitioner, a dealer registered under State and Central Goods and Services Tax Acts, faced suspension of registration due to alleged non-filing of returns for six months. The petitioner promptly filed returns upon receiving the show cause notice, seeking revocation of the suspension. The court noted that the suspension occurred before the returns were filed, causing financial losses to the petitioner. The petitioner argued that if there were any irregularities in the returns, a separate proceeding could be initiated, but suspension was unwarranted. The respondent authority contended that the mere filing of returns after receiving the notice did not absolve the petitioner from the consequences of non-compliance. The court directed the respondent authority to allow the petitioner to submit returns for the relevant period and to unblock the GST portal, emphasizing that any discrepancies could be addressed through appropriate legal procedures.

Financial Losses and Revocation of Suspension:
The petitioner highlighted acute financial losses resulting from the suspension of registration, impacting the business operations. Despite the petitioner's application for revocation of suspension under relevant GST laws, the respondent authority did not act, exacerbating the financial strain on the petitioner. The court acknowledged the adverse effects of the suspension on the petitioner's business and directed the respondent authority to release the blocked GST portal, enabling the petitioner to resume normal business activities. The court's decision aimed to mitigate the financial hardships faced by the petitioner while ensuring compliance with legal procedures.

Conclusion:
The High Court of Tripura addressed the petitioner's grievances regarding the suspension of registration under the Goods and Services Tax Act, 2017. By allowing the petitioner to submit pending returns and unblocking the GST portal, the court sought to balance regulatory requirements with the petitioner's financial interests. The judgment emphasized the importance of procedural fairness and the need to address compliance issues without unduly burdening the petitioner's business operations.