2024 (1) TMI 568 - HC - GST

Revocation of GST registration - Petitioner had not filed its 3B returns for more than six months - proper opportunity of hearing not provided - violation of principles of natural justice - HELD THAT - Considering the peculiar facts of the case and the nature of the impugned orders and the grievance of the Petitioner that the Petitioner was not adequately heard in the impugned orders being passed, it is opined that as now the Petitioner has regularized the returns upto March 2023 and is also willing to regularize the future returns within four weeks from the date the registration is restored, the Petitioner needs to be granted such an opportunity to undertake filing of the returns for the future period after March 2023. The impugned orders dated 31st May 2023 and 14th September 2023 are hereby quashed and set aside - Respondents are directed to restore the GST registration of the Petitioner within a period of one week from the date of uploading of this Order - petition allowed.

Summary

Issues involved:
The issues involved in this case include the cancellation of GST registration of the Petitioner due to failure to file returns, rejection of the Petitioner's application for revocation of cancellation, the subsequent appeal filed by the Petitioner, and the restoration of GST registration.

Cancellation of GST Registration:
The Respondent issued an order for the cancellation of the Petitioner's GST registration citing non-filing of 3B returns for over six months. The Petitioner filed an application for revocation of the cancellation, but a rejection order was passed without giving the Petitioner an opportunity to explain. Subsequently, an appeal was filed by the Petitioner stating reasons for the delay in filing returns.

Appellate Tribunal Issue:
The Petitioner contended that due to the absence of an Appellate Tribunal, it had to approach the High Court through a Writ Petition as no other efficacious remedy was available. The Petitioner argued that it had now complied with payments and filed returns up to March 2023, requesting the restoration of GST registration to enable further compliance.

Court Decision and Orders:
Considering the submissions and facts of the case, the Court quashed the orders of rejection and upheld the Petitioner's plea for restoration of GST registration. The Court directed the Respondents to restore the registration within a week and mandated the Petitioner to file all pending returns and make payments within four weeks from restoration. The Court emphasized the importance of future compliance to avoid prejudice to the Revenue and made no order as to costs.

This judgment highlights the importance of procedural fairness in matters of tax registration cancellations and revocations, emphasizing the need for authorities to provide adequate opportunities for affected parties to present their case. The decision also underscores the significance of timely compliance with tax obligations and the role of the judiciary in ensuring a balance between taxpayer rights and revenue interests.