2021 (11) TMI 752 - Commissioner - GST

Appeal allowed, compliance required for revocation under CGST Act.

The appeal was allowed, and the Additional Commissioner directed the proper officer to verify compliance before considering the revocation application. ... Revocation of cancellation of registration - rejection due to not deposit interest liability against late discharged cash payment and also appellant not replied to the show cause notice - HELD THAT:- On account of inadvertent mistake, particulars of disputed order were wrongly entered of Registration passed by the learned Superintendent, Circle-3, Jaipur Ward-I. This was a genuine clerical mistake which has caused ab-initio incorrectness in appeal memo. That the appellant has deposited of interest and be considered as the requirement has been complied. The appellant has deposited ₹ 11,062/- towards interest liability on 15.06.2021 (vide DRC-03 ARN No.AD0806210018946 Dated 15.06.2021 CGST ₹ 5,531/- and SGST ₹ 5,531/- for the period April-2020 to December-2020). Further, the appellant submitted copy of DRC-03 dated 15.06.2021 and also filed GSTR-3 B return for the period July-2020 August-2020 September 2020, October-2020, November-2020 and December-2020 respectively. The appellant has filed returns upto date of cancellation of registration hence, the appellant has substantially complied with the said provisions of the CGST Act/Rules, 2017 in the instant case. Therefore, the registration of appellant may be considered for revocation by the proper officer. The proper officer is ordered to consider the revocation application of the appellant after due verification of payment particulars of tax, late fee, interest and status of returns - appeal disposed off. Issues Involved:Revocation of GST registration due to non-filing of returns for six months; Rejection of revocation application for non-compliance with interest liability and show cause notice; Appeal against rejection of revocation application based on COVID-related reasons; Compliance with CGST Act/Rules for revocation of registration; Consideration of revocation application after filing pending returns and depositing interest liability.Analysis:1. Revocation of GST Registration:The case involved the cancellation of GST registration of the appellant due to non-filing of returns for a continuous period of six months. The Proper Officer cancelled the registration and rejected the application for revocation due to non-compliance with interest liability and failure to respond to a show cause notice.2. Appeal Against Rejection:The appellant filed an appeal against the rejection of the revocation application, citing reasons related to the impact of COVID-19 on the health of a family member. The appellant argued that the rejection did not consider the abnormal circumstances caused by the pandemic and referred to Supreme Court directions and government notifications regarding extensions due to the situation.3. Compliance with CGST Act/Rules:During the appeal process, the appellant submitted pending returns and deposited the interest liability amount. The Additional Commissioner considered the provisions of Rule 23 of the CGST Rules, 2017, which outline the requirements for revocation of cancellation of registration. The appellant's compliance with these provisions was crucial in the decision-making process.4. Consideration of Revocation Application:After reviewing the submissions and records, the Additional Commissioner found that the appellant had filed returns up to the date of cancellation of registration, indicating substantial compliance with the CGST Act/Rules. Consequently, the Additional Commissioner allowed the appeal and directed the proper officer to verify payment particulars and the status of returns before considering the revocation application.5. Final Disposition:The appeal was disposed of by allowing the appellant's appeal and ordering the proper officer to consider the revocation application after verifying compliance with tax payments, late fees, interest, and return filings. The decision highlighted the importance of meeting the statutory requirements for revocation of registration under the CGST Act/Rules.This detailed analysis of the judgment provides insights into the legal considerations, procedural compliance, and decision-making process involved in the revocation of GST registration in the context of non-filing of returns and subsequent appeal proceedings.