2021 (9) TMI 1316 - HC - GST

Court Revokes Registration Cancellation, Extends Deadline for Revocation Application

The court set aside the Appellate Authority's dismissal of the appeal against the cancellation of registration under the Tamil Nadu Goods and Services Tax ... Cancellation of registration of petitioner - writ petitioner had not furnished returns for a continuous period of six months - Section 29(2)(c) of TN Goods ST Act - HELD THAT:- The writ petitioner submitted that the second registration does not save the day for the writ petitioner as the Input Tax Credit [ITC] that has accrued qua earlier registration cannot now be taken advantage of by the writ petitioner. Owing to the order, it is deemed appropriate to refrain myself from expressing any view or opinion on this submission. There is no disputation or disagreement before me that the aforementioned Order made by the Central Government being order dated 25.06.2020 and subsequent extension of time vide notification of Central Government dated 29.08.2021 applies mutatis mutandis to TN Goods ST Act. This undisputed obtaining position is recorded. Now, that the writ petitioner has time till 30.09.2021 to apply for revocation of cancellation of registration under Section 30 of TN Goods ST Act it is only fair and appropriate (owing to the facts and circumstances of the case on hand) that the writ petitioner is given an opportunity to apply for revocation taking advantage of extension time frame that has been given to writ petitioner and similarly placed persons by the Central Government. The fact that the Appellate Authority has disposed of/dismissed the appeal solely on the ground of limitation makes the task easier as no opinion on merits qua first impugned order i.e., cancellation of registration has been made by the Appellate Authority. The second impugned order i.e., order made by the second respondent in Appeal No.102 of 2021 being order dated 22.07.2021 is set aside solely to facilitate the writ petitioner to apply for revocation under Section 30 of TN Goods and ST Act - petition disposed off. Issues Involved:1. Cancellation of registration under the Tamil Nadu Goods and Services Tax Act, 2017.2. Appeal against the cancellation order dismissed on grounds of limitation.3. Extension of time for revocation of cancellation order by the Central Government.4. Application for revocation under Section 30 of TN Goods ST Act.5. Implications of obtaining a second registration.Analysis:1. The judgment dealt with the cancellation of registration under the Tamil Nadu Goods and Services Tax Act, 2017 (TN Goods ST Act) due to the writ petitioner's failure to furnish returns for a continuous period of six months. The cancellation order was challenged through statutory appeal under Section 107(1) of the TN Goods ST Act, which was dismissed by the Appellate Authority solely on the ground of limitation without addressing the merits of the case.2. The Central Government, under the Central Goods and Services Tax Act, 2017, extended the time for assailing the cancellation of registration orders, providing an opportunity for dealers to apply for revocation. This extension was further prolonged through a notification, giving the writ petitioner until 30.09.2021 to seek revocation of the cancellation order under Section 30 of the TN Goods ST Act.3. The court acknowledged that the writ petitioner had obtained a second registration but highlighted that this new registration did not allow the writ petitioner to benefit from the Input Tax Credit accrued under the earlier registration. However, the judgment refrained from expressing a view on this matter, focusing instead on granting the writ petitioner the opportunity to apply for revocation within the extended timeframe provided by the Central Government.4. Consequently, the court set aside the Appellate Authority's order to facilitate the writ petitioner's application for revocation under Section 30 of the TN Goods ST Act. It was emphasized that no opinion on the merits of the case had been expressed by the Appellate Authority, and the writ petitioner was given until 30.09.2021 to submit the revocation application for consideration by the proper officer.5. The judgment concluded by disposing of the main writ petitions and related miscellaneous petitions, allowing the writ petitioner to proceed with the application for revocation within the extended timeframe. The court also addressed a request to dispense with the production of the original cancellation order, granting the request based on the reasons provided in the supporting affidavit and making no order as to costs.