2023 (8) TMI 1350 - HC - GST

Cancellation of GST registration of petitioner - failure on the part of the petitioner to remit the admitted tax liability - HELD THAT - This Court had earlier passed a detailed order in the case of Suguna Cutpiece Centre Vs. The Appellate Joint Commissioner of GST (ST) (GST) and another 2022 (2) TMI 933 - MADRAS HIGH COURT whereby registrations were directed to be restored back. The Government had itself recognised the difficulties of assessees and had given a amensty scheme vide Notification No.03/2023 - Central Tax dated 31.03.2023. By virtue of the aforesaid scheme, assessee's registration whose registrations were cancelled before 31.12.2022 given a reprieve. As per the explanation of the notification, the person who has failed to apply for revocation of cancellation of registration within the time period specified in Section 30 of the said Act includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under Section 107 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under Sub-Section (1) of Section 30 of the said Act - the Scheme has been now extended up to 31.08.2023 vide Notification No.23/2023 Central Tax, dated 17.07.2023. Although the scheme applies to those whose registrations were cancelled before 31.12.2022, the intention of the Government is to allow the registrants, whose registration have been revoked to revive their registration to carry on the business. Considering the fact that the benefit of the scheme is available for those, whose registrations were cancelled before 31.12.2022, Court is of the view that the benefit of the scheme should ensure to persons like petitioner also whose registrations was cancelled after the cut-off date. The Court is therefore inclined to dispose this writ petition by directing the petitioner to pay the arrears of tax together with interest before the cut off date on 31.08.2023 under Notification No.23/2023 Central Tax, dated 17.07.2023 - petition disposed off.

Summary

Issues Involved:
The issues involved in this case are the cancellation of GST registration of the petitioner due to failure to remit tax liability, the petitioner's appeal for revocation of cancellation after the limitation period, and the application of the amnesty scheme for restoration of registrations.

Cancellation of GST Registration:
The petitioner's GST registration was canceled in Form GST REG-19 on 04.02.2023 because of the petitioner's failure to remit the admitted tax liability. The petitioner approached the Court after the limitation for filing an Appeal under Section 107 of the GST Act had expired.

Amnesty Scheme for Registration Restoration:
The Court referred to a previous order where registrations were directed to be restored back, and a government amnesty scheme was mentioned in Notification No.03/2023 - Central Tax. The scheme allowed for the revocation of canceled registrations before 31.12.2022, with a prescribed procedure for application.

Extension of Amnesty Scheme:
The amnesty scheme was extended up to 31.08.2023 through Notification No.23/2023 - Central Tax. Even though the scheme initially applied to registrations canceled before 31.12.2022, the intention was to allow registrants whose registrations were revoked to revive their registration for business purposes.

Court's Decision:
The Court acknowledged that the benefit of the scheme should be available to individuals like the petitioner, whose registration was canceled after the specified cut-off date. Consequently, the Court directed the petitioner to pay the arrears of tax and interest before 31.08.2023 under the extended scheme. Upon payment, the registration of the petitioner would be restored immediately by the respondents.

Conclusion:
The writ petition was disposed of with no costs, and the connected miscellaneous petition was closed. The Court's decision ensured the revival of the petitioner's GST registration upon payment of arrears within the specified timeline under the extended amnesty scheme.