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TMI Blog2024 (9) TMI 1288X X X X Extracts X X X X X X X X Extracts X X X X ..... of India on the facts which came out therein. The facts though not identical, the hardship projected is almost similar to that in CWJC 11874 of 2024 and the Division Bench of the High Court found that the constitutional guarantee to carry out trade and commerce is unconditional and unequivocal and it must be enforced regardless of shortcomings in the scheme of the GST enactment. There is no ground validly raised against the delay in filing an appeal - Section 30 which provides for revocation of cancellation of registration if applied for within thirty days. There arev absolutely no reason to exercise our discretionary power to interfere with the orders passed; clearly within the boundaries of the statute - there are no reason to entertain the writ petition on the ground of testing the constitutional validity of Section 29 (2) - The writ petition is dismissed. - HONOURABLE THE CHIEF JUSTICE K. VINOD CHANDRAN AND HONOURABLE MR. JUSTICE PARTHA SARTHY Appearance : (In Civil Writ Jurisdiction Case No. 11874 of 2024) For the Petitioner/s : Mr. Sanjeev Kumar, Advocate For the Respondent/s : Dr. K.N. Singh, ASG Mr. Anshuman Singh, Sr. SC, CGST CX Mr. Devansh Shankar Singh, Advocate Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2024 is aggrieved with the proceeding initiated by a show-cause notice dated 28.12.2000 which culminated in the cancellation of registration by the final order dated 14.01.2021. The show-cause notice and the final order of cancellation of registration is enclosed along with Annexure-P/1 of the writ petition which is the appeal filed before the First Appellate Authority. The appeal of the petitioner was rejected by Annexure-P/2 order on the ground of delay. The order challenged in the appeal as we noticed was dated 14.01.2021 and the appeal was filed on 30.04.2024. The various orders by which the Hon ble Supreme Court had extended limitation during the pandemic period has also been annexed with Annexure-P/1 with which we shall deal a bit later. It was when the appeal was dismissed on the ground of delay that the petitioner has thought it fit to challenge the vires of the provision under Section 29 of the CGST Act. 4. At the outset, we have to observe that the constitutional challenge made to the provision is a last-ditch effort, since the petitioners had not availed the statutory remedies in time and also not taken up its cause when there was a window of relief provided by way of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Further, the Government had come out with an Amnesty Scheme by Circular No. 3 of 2023, by which the registered dealers, whose registrations were cancelled were permitted to restore their registration on payment of all dues between 31.03.2023 to 31.08.2023. The petitioner did not avail of such remedy also. 9. The petitioner admittedly did not agitate the cause within the four walls of the statute and hence has raised the question of constitutional validity of Section 29 (2) under both the enactments. We have seen the decision in Rohit Enterprises (supra) which only has a persuasive effect, which also does not have any declaration of law and has only exercised discretion under Article 226 of the Constitution of India on the facts which came out therein. The facts though not identical, the hardship projected is almost similar to that in CWJC 11874 of 2024 and the Division Bench of the High Court found that the constitutional guarantee to carry out trade and commerce is unconditional and unequivocal and it must be enforced regardless of shortcomings in the scheme of the GST enactment. We are unable to subscribe to the above view expressed by the learned Division Bench; with all the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing lost does not impress us. 13. As far as CWJC 11941 of 2024, there are no reasons stated for the delay in filing the appeal. The petitioner contends that they were not aware of Circular No. 3 of 2023, but makes no mention of Section 30 or Section 107 of the GST Act. The further ground raised of mens rea is also fallacious since the very ground on which the cancellation was effected was of non-filing of returns for a consecutive period of six months. Both the petitioners have not disputed this fact and there is no substantiation of any such returns having been filed. 14. We also notice the Constitution Bench decision of the Hon ble Supreme Court in M.A. Rahman and Others vs. The State of Andhra Pradesh; 1962 SCR 694 . The challenge was against the Madras Sales of Motor Spirit Taxation Act which was made applicable to the State of Andhra Pradesh by an Extension and Amendment Act. The purpose and object of the Act was to levy and collect tax on retail sales of motor spirit and the liability for payment was placed upon the person effecting the sale. There was a provision for registration; which was for the purpose of identifying the dealer from whom the tax was due and also provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g cancellation of registration in cases like these is one more method of compelling payment of tax which is due to the State. Collection of revenue is necessary in order that the administration of the State may go on smoothly in the interest of the general public. The State has therefore armed itself with one more coercive method in order to realise the tax in such cases. It is true that cancellation of registration may result in a dealer being unable to carry on the business, but the same result may even follow from the application of other of coercive processes for realisation of dues from a trader, for his assets may be sold off to pay the arrears of tax and he may thereafter be not in a position to carry on the business at all. Therefore the provision for cancellation of registration for failure to pay the tax or for fraudulently evading the payment of it is an additional coercive process which is expected to be immediately effective and enables the State to realise its revenues which are necessary for carrying on the administration in the interest of the general public. The fact that in some cases restrictions may result in the extinction of the business of a dealer would not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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