2024 (10) TMI 1381 - HC - GST

Cancellation of GST registration of petitioner - petitioner had not filed GST monthly returns for a continuous period of six months - HELD THAT - The reason set out in the order of cancellation is non filing of returns for a continuous period of six months. In Suguna Cutpiece, this Court directed restoration of GST registration subject to several terms and conditions. The said judgment was followed thereafter in many cases. In order to maintain consistency, the said judgment is followed. The petitioner is directed to file her returns for the period prior to the cancellation of registration, 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 - petition disposed off.

Summary

Issues:
Challenge of GST registration cancellation due to non-filing of returns for six months, impact of petitioner's accident on filing returns, reliance on judgment for restoration of registration, conditions for restoration based on previous judgment.

Analysis:
The petitioner, engaged in small scale manufacturing and selling of knitted garments, challenged the cancellation of his GST registration due to non-filing of returns for six months. A show cause notice was issued on 20.03.2023, but the petitioner, who had met with an accident, did not reply. The impugned order was issued on 22.05.2023, leading to the filing of the writ petition. The petitioner's counsel argued that returns were filed and taxes paid until the accident in September 2022, which rendered the petitioner unable to file returns or pay taxes thereafter. The counsel relied on the judgment in Suguna Cutpiece case for restoration of registration.

The Government Advocate for the respondent acknowledged the notice and contended that the order in Suguna Cutpiece was conditional, requiring the petitioner to comply with all stipulated conditions. The cancellation was based on the continuous non-filing of returns for six months. The court noted that the judgment in Suguna Cutpiece directed restoration of GST registration subject to various terms and conditions, which were followed in subsequent cases for consistency. Emphasizing the need for uniformity, the court decided to adhere to the principles laid down in the said judgment.

The court referred to the specific directions issued in the Suguna Cutpiece judgment, which included filing returns for the period before registration cancellation, payment of tax dues with interest and fees within 45 days, restrictions on utilizing unclaimed Input Tax Credit, scrutiny of Input Tax Credit by competent authorities, declaration of correct value of supplies, and approval processes for utilizing Input Tax Credit. The court highlighted that restoration of GST registration was contingent upon fulfilling these conditions.

Consequently, the court disposed of the writ petition in line with the conditions outlined in the Suguna Cutpiece judgment, without imposing any costs. The connected miscellaneous petitions were also closed as a result of the decision.