2024 (2) TMI 1174 - HC - GST

Cancellation of GST registration - non-furnishing of returns in compliance of the provisions of Section 39 of the CGST Act, 2017 for a continuous period of 6 six or more months - HELD THAT - The GST registration of the petitioner has been cancelled under Section 29 2 c of the CGST Act, 2017 for the reason that the petitioner did not submit returns for a period of 6 six months and more; the provisions contained in Rule 22 of the CGST Rules, 2017 which provides that if a noticee receiving a notice under Rule 22 1 , furnishes all the pending returns and makes full payment of the tax dues, along with applicable interest and late fee, the proper officer is required to drop the proceedings; the undertaking given on behalf of the petitioner that he is ready and willing to comply such terms; and the orders passed by the coordinate benches of this Court as well as by this Court in similar matters whereby the writ petitions have been disposed of with a direction to the respondent authorities to revoke the cancellation of registration upon due payment of all statutory dues payable by the petitioners therein; this Court is of the considered view that no purpose will be served by keeping this writ petition pending and the present writ petition can be disposed of in similar terms, as had been passed in similar writ petitions. The petitioner is directed to approach the concerned authority within a period of 1 one month from today, seeking revocation of cancellation and restoration of his GST registration. On such approach by the petitioner, the concerned authority will intimate the petitioner the total outstanding statutory dues, if any, standing in the name of the petitioner till the date of cancellation of registration and any other outstanding dues under the GST Act required to be paid by the petitioner. The impugned Order is hereby interfered with and set aside - Petition allowed.

Summary

Issues involved:
The cancellation of GST registration due to non-furnishing of returns for a continuous period of 6 months under Section 39(1) of the CGST Act, 2017.

Summary:
The petitioner, a businessman engaged in works contract business, had his GST registration cancelled for not submitting returns for over 6 months, despite reasons beyond his control such as the Covid-19 pandemic affecting his business financially. The petitioner tried to file for revocation after filing returns but missed the deadline. The case revolved around Section 39(1) of the CGST Act, 2017, which mandates monthly return filing, and Rule 22 of the CGST Rules, 2017, detailing the procedure for cancellation of registration.

The petitioner's counsel argued that due to pandemic-related financial losses, the petitioner couldn't file returns for over 6 months. The counsel referenced similar writ petitions where GST registrations were restored, urging a similar outcome. The Standing Counsel for CGST acknowledged similar orders by the court in comparable cases.

Considering the necessity for entities to pay statutory dues under the GST regime to contribute to revenue, the court emphasized the importance of the petitioner complying with tax obligations. The court noted the provisions of Rule 22(4) allowing for dropping proceedings if pending returns are filed and tax dues are paid, along with the petitioner's willingness to comply.

Ultimately, the court set aside the cancellation order and directed the petitioner to approach the authority for revocation within a month, pay any outstanding dues, and upon payment, the authority would restore the GST registration. The court disposed of the writ petition with no costs incurred.