GST registration cancellation revoked after petitioner missed show cause notice deadline during COVID-19 pandemic under Section 29

Madras HC allowed petitioner's writ petition for revocation of GST registration cancellation. The registration was cancelled under Section 29 of CGST Act, 2017 after petitioner failed to respond to show cause notice. Though statutory appeal period expired, considering COVID-19 pandemic extensions and government notifications allowing revocation applications till 30.09.2021, the court found merit in petitioner's case. HC directed respondents to accept returns and facilitate tax payment as required under Section 30 CGST Act and Rule 23, disposing the petition favorably.

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Issues:
1. Application for revocation of cancellation of GST registration.
2. Extension of time for filing revocation application.
3. Rejection of application for revocation.

Analysis:
1. The petitioner filed a writ petition seeking a mandamus to direct the respondents to allow the petitioner to apply for revocation of the cancellation of GST registration. The petitioner had obtained GST registration post-implementation of GST but failed to comply with statutory requirements, leading to cancellation. Despite submitting a reply and appearing before the respondents, the registration was canceled by an order dated 24.09.2019. The petitioner sought relief based on notifications extending the time for filing revocation applications due to difficulties faced by registrants.

2. The petitioner's counsel highlighted the notifications issued by the Ministry of Finance, extending the deadline for filing revocation applications. The petitioner attempted to file an application within the extended timelines but was met with a response stating the application cannot be filed after 579 days from the cancellation order date. Reference was made to a previous court order allowing a similar relief, emphasizing the need to provide an opportunity to apply for revocation within the extended time frame granted by the government.

3. The court noted that the petitioner was issued a show-cause notice under Section 29(2)(b) of the CGST Act, 2017, and failed to respond, leading to the cancellation order. The petitioner missed the deadline for filing an appeal or seeking revocation. However, the Central Board of Indirect Taxes and Customs issued orders clarifying the calculation of the revocation application period, considering the challenges faced by taxpayers. The court directed the respondents to accept the returns and facilitate tax payment by the petitioner to restore registration within 45 days from the order date.

This detailed analysis covers the issues raised in the legal judgment, outlining the petitioner's arguments, relevant legal provisions, government notifications, and the court's decision to provide relief to the petitioner in the matter of revocation of GST registration cancellation.

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