2020 (4) TMI 496 - HC - GST

Petitioner ordered to seek GST registration restoration post-lockdown with upfront payment.

The court directed the petitioner to make a fresh representation to the Commissioner, CGST, with an upfront amount of Rs. 30.00 lakh. The Commissioner was ... Cancellation of GST registration for non-filing and non-payment - Revocation of cancellation under Section 29(2)(c) of CGST Act - Payment of tax and other amounts in instalments under Section 80 of CGST Act - Keeping impugned order in abeyance pending representation - Restoration of GST registration subject to conditions and public health measuresCancellation of GST registration for non-filing and non-payment - Revocation of cancellation under Section 29(2)(c) of CGST Act - Payment of tax and other amounts in instalments under Section 80 of CGST Act - Keeping impugned order in abeyance pending representation - Petitioner permitted to seek revocation of cancellation by making a fresh representation and the impugned cancellation order to be kept in abeyance pending decision by the Commissioner. - HELD THAT: - The Court did not adjudicate the substantive correctness of the cancellation for non-filing of returns and alleged non-payment; instead, having noted the parties' positions that the petitioner disputes the character of the admitted liability and relies on the instalment mechanism under Section 80, the Court afforded the petitioner an opportunity to approach the statutory authority. The petitioner was granted four weeks to file a fresh representation to the Commissioner, CGST, accompanied by an upfront payment as directed by the Court. Upon receipt, the Commissioner is directed to consider the request for revocation of the cancellation order in accordance with law and decide the representation within ten days. Until the Commissioner takes that decision, the impugned cancellation order is to remain in abeyance. The Court thereby remitted the question of revocation and any assessment of compliance with statutory preconditions to the Commissioner for fresh consideration under the applicable provisions, including the instalment facility where appropriate.Writ petition disposed by granting liberty to file a fresh representation within four weeks with the directed upfront payment; Commissioner to decide revocation within ten days; impugned cancellation order kept in abeyance meanwhile.Final Conclusion: The writ petition is disposed by directing the petitioner to make a fresh representation to the Commissioner within four weeks (with the specified upfront amount); the Commissioner shall consider the request for revocation in accordance with law within ten days of receipt; the cancellation order dated 13.03.2020 is kept in abeyance until the Commissioner decides, and the petitioner's GST registration shall be restored once the nationwide lockdown is over. Issues:1. Cancellation of GST Registration due to non-filing of returns for an extended period.2. Dispute regarding tax liability and interest payment.3. Application of Section 80 of CGST Act for payment in installments.4. Directions for revocation of cancellation order and restoration of GST registration post lockdown.Analysis:The petitioner's GST Registration was canceled by the respondent due to non-filing of GST returns for an extended period. The respondent contended that the petitioner had defaulted in submitting returns for sixteen months and had a tax liability of Rs. 1,48,01,516. On the other hand, the petitioner claimed to have cleared the tax liability up to February 2020, with the outstanding amount being towards interest for delayed payment of tax. The petitioner relied on Section 80 of the CGST Act, which allows for payment in installments, and expressed willingness to pay the entire amount in installments.The court considered the submissions from both parties and directed the petitioner to make a fresh representation to the Commissioner, CGST within four weeks, along with an upfront amount of Rs. 30.00 lakh. The Commissioner was instructed to review the request for revocation of the cancellation order within ten days of receiving the representation, keeping the cancellation order in abeyance until a decision was made. The court further ordered the restoration of the petitioner's GST registration post lockdown, ensuring that the registration would be reinstated once the nationwide lockdown was lifted.In conclusion, the judgment provided a pathway for the petitioner to address the cancellation of GST registration by following the procedures outlined in Section 80 of the CGST Act, emphasizing the importance of timely payment and compliance with tax regulations while offering the opportunity for installment payments to resolve the outstanding tax liability.