2023 (8) TMI 579 - HC - GST

Cancellation of GST registration of petitioner - case of petitioner is that if the cancellation is set aside and the GST registration is revoked, then the petitioner is willing to pay the GST along with late fee - HELD THAT - On perusal of the impugned order, dated 19.12.2022, it is seen that the respondent have not cited any reason. It is seen from the records that the Government has issued Notification No.03/2023-Central Tax dated 31.03.2023 and has extended the time up to 30.06.2023, but the extension is granted to taxpayers granting time on or before 31.12.2022. Unfortunately, the petitioner s cancellation was on 12.01.2023, had it been prior to 31.12.2022 then the petitioner would have come within the time prescribed under the said notification. But the consideration for extension was pending during that period, hence this Court is of the considered that the petitioner is entitled to the benefit. This Court is allowing the writ petition and the respondent is directed to restore the petitioner s GST registration number. After restoration, the petitioner is directed to file the returns and pay tax and penalty as per law - Petition allowed.

Summary

Issues involved:
The issues involved in this case are the cancellation of GST registration due to non-filing of returns, the petitioner's contention regarding the cancellation order, the petitioner's inability to avail benefits of an amnesty scheme due to cancellation, and the extension of time for taxpayers under a government notification.

Cancellation of GST Registration:
The petitioner, a Construction Company registered under GST, filed a writ petition seeking to quash the cancellation order of GSTN Registration No.33ABNFA2958F1ZF. The petitioner had not filed GST returns for six months due to the accountant's failure to do so, leading to the cancellation. The petitioner argued that the cancellation occurred after the deadline for availing an extension granted by a government notification, thus seeking restoration of the registration.

Contention and Inability to Avail Amnesty Scheme:
The petitioner contended that a show cause notice was issued on a web portal, which they were not proficient in accessing, leading to the cancellation of registration without proper details. Despite an amnesty scheme being issued, the petitioner could not benefit from it due to the cancellation of GST registration, causing further hardship.

Extension of Time and Court's Decision:
The Court considered the petitioner's arguments and noted the lack of reasons cited in the cancellation order. It observed that an extension granted by a government notification could have benefitted the petitioner if the cancellation had occurred before a specified date. Relying on a previous judgment, the Court held that the petitioner was entitled to the benefit of the extension. Consequently, the Court allowed the writ petition, directing the respondent to restore the petitioner's GST registration for filing returns and paying taxes and penalties in accordance with the law.