2024 (1) TMI 566 - HC - GST

Cancellation of petitioner's GST Registration - petitioner submitted that the petitioner would file GST returns and would pay tax along with penalties and interest thereon etc. ,in the event of its GST Registration number being restored - HELD THAT - In view of the fact that the petitioner has been continuing his business operations and due to the ill health of the Managing Partner of the petitioner-Firm, who was incharge of filing the GST returns of the petitioner, the petitioner-Firm was not in a position to file GST Returns and in the light of the judgments relied on by the learned counsel for the petitioner, this court, in the interest of justice, is inclined to allow this Writ Petition. The petitioner is directed to file restoration petition and the respondent is directed to accept the same and restore the GST Registration number within a week from the date of filing of restoration petition. On restoration of GST Registration, the petitioner is directed to pay the GST dues from July 2022 to December 2022 along with interest, penalty etc., within a period of 45 days from the date of restoration of GST. The impugned order is set aside - Petition allowed.

Summary

Issues involved: Challenge to cancellation of GST Registration number due to non-filing of monthly returns without reasonable opportunity of being heard.

Summary:
The petitioner, engaged in trading Blue Metal and construction services, challenged the cancellation of their GST Registration due to non-filing of returns, citing the ill health of the Managing Partner as the reason for the default. The petitioner argued that the cancellation was without a reasonable opportunity of being heard, violating natural justice principles. The petitioner referred to previous court decisions where registration cancellations were restored, emphasizing the need for leniency in such cases.

The court considered the petitioner's submissions and the respondent's argument of default in filing returns. Given the petitioner's continued business operations and the Managing Partner's ill health affecting return filing, the court decided in favor of the petitioner. The court allowed the Writ Petition, setting aside the cancellation order, and directed the petitioner to file a restoration petition. The respondent was instructed to accept the restoration petition and restore the GST Registration number within a week. The petitioner was further directed to pay the outstanding GST dues, interest, and penalties within 45 days of the restoration. No costs were imposed in this matter.