2024 (7) TMI 1099 - HC - GST

Cancellation of GST registration - petitioner could not file returns in time on account of ill-health and COVID 19 pandemic - HELD THAT - The petitioner is directed to file returns for the period prior to the cancellation of registration, if not filed, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of forty five (45) days from the date of receipt of a copy of this order - It is made clear that such payment of tax, interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit (ITC) which may be lying unutilized or unclaimed in the hands of the petitioner. Petition disposed off.

Summary

Issues:
Challenge to cancellation of GST registration due to inability to file returns on time because of ill-health and COVID-19 pandemic.

Analysis:
The petitioner challenged the cancellation of their GST registration dated 04.03.2022, citing the inability to file returns on time due to ill-health and the COVID-19 pandemic. The petitioner, through their counsel, argued that they had no business due to the resurgence of the pandemic, resulting in the failure to file returns. Reference was made to the judgment in Suguna Cutpiece case to support the restoration of registration.

The Government Advocate representing the respondent accepted the notice and suggested that directions similar to those in the Suguna Cutpiece case could be issued. Consequently, the writ petition was disposed of with specific directions for the petitioner to follow. The petitioner was directed to file returns for the period before the cancellation, pay tax dues with interest and late fees within 45 days of receiving the order. Importantly, the payment was not to be made from any unutilized Input Tax Credit (ITC) without approval from the competent officer.

Further directions included the scrutiny and approval of any unutilized ITC before utilization, payment of GST and filing of returns for the subsequent period, and the revival of registration upon payment of tax and penalties. The respondent was instructed to make necessary changes to the GST Web portal to facilitate compliance by the petitioner within 30 days of the order.

The restoration of GST registration was made subject to fulfilling the specified conditions, and the writ petition was disposed of accordingly, with no order as to costs. Connected miscellaneous petitions were also closed as a result of the judgment.