2023 (12) TMI 827 - HC - GST

Seeking direction to decide the Application for Revocation cancellation of Registration - seeking details for the difference in ITC as per GSTR 3B and ITC accured as per GSTR 2A - restoration of GST registration of the petitioner - HELD THAT - The petitioner responded to the SCN dated 02.08.2023 by furnishing further information regarding the change of its principal place of business. Notwithstanding the same, the petitioner s application for revocation of the cancellation order dated 25.11.2023 has not been decided. Instead, the Proper Officer has issued a further communication dated 04.09.2023 seeking reconciliation of the difference between the Input Tax Credit claimed under the return (GSTR-3B) and the Input Tax Credit as reflected in the return (GSTR-2A) for the financial years 2020-2021 to 2023-2024 - It is apparent that discrepancy in the Input Tax Credit claimed by the petitioner was not the ground on which the petitioner s GST registration was cancelled. The petitioner claims that it is handicapped in responding to the communication dated 04.09.2003, and reconciling the Input Tax Credit Claim for more than three financial years, in absence of full access to its GST Portal. This access is unavailable as the petitioner s GST registration has been cancelled with retrospective effect. It is considered apposite to direct that the concerned officer shall decide the petitioner s application for revocation of the cancellation order after examining all aspects as to whether the petitioner was existent at its principal place of business at the material time. The writ petition is allowed.

Summary

Issues:
The judgment involves the cancellation of GST registration of a petitioner, subsequent application for revocation, discrepancy in Input Tax Credit, and the need for proper examination by the concerned officer.

Cancellation of GST Registration:
The petitioner's GST registration was cancelled based on a Show Cause Notice (SCN) dated 02.06.2023, which alleged the petitioner was non-existent at its registered address. The cancellation was preceded by a visit from the Directorate of Revenue Intelligence (DRI) officials who did not find the petitioner at the premises. The petitioner had applied for a change of address prior to the SCN, but the application was rejected as the query remained unfulfilled. The cancellation order was issued on the premise that the petitioner was non-existent at its principal place of business.

Application for Revocation:
The petitioner applied for revocation of the cancellation order on 02.08.2023, providing further information regarding the change of its principal place of business. However, the application was not decided, and instead, the Proper Officer sought reconciliation of Input Tax Credit for multiple financial years. The petitioner claimed difficulty in responding to this due to lack of access to the GST Portal post the cancellation of registration.

Court's Direction:
The Court directed the concerned officer to decide on the revocation application after examining all aspects of the petitioner's existence at its principal place of business. The officer was instructed to conclude the proceedings within six weeks and restore the registration if the petitioner was found existent at its original place of business. Additionally, the respondents were directed to provide all necessary returns and information to enable the petitioner to respond to the communication regarding Input Tax Credit.

Conclusion:
The writ petition was allowed, emphasizing the need for a thorough examination of the petitioner's situation before the cancellation of GST registration and providing access to necessary information for the petitioner to address the discrepancies in Input Tax Credit.