2021 (12) TMI 890 - HC - GST

Extension of Time Limit for GST Registration Revocation Applications

Aarcity Builders Private Limited, M/s. Nand Spark Shine Company, M/s. VSL Security Services Pvt. Ltd. and Orion Automobiles Pvt. Ltd. Versus Union of India and others, State of Haryana and others

Aarcity Builders Private Limited, M/s. Nand Spark Shine Company, M/s. VSL Security Services Pvt. Ltd. and Orion Automobiles Pvt. Ltd. Versus Union of ... Issues:1. Consideration of applications for revocation of cancellation of registration under the Central Goods and Services Tax Act, 2017.2. Interpretation of notifications regarding the time limit for filing applications for revocation of cancellation of registration in light of the Covid-19 pandemic.Analysis:Issue 1:The petitioners raised concerns that their applications for revocation of cancellation of registration were not being processed due to not meeting the time limit prescribed under Section 30 of the CGST Act. The cancellation orders were issued due to failure to file returns, but later, Amnesty Schemes were introduced recognizing the challenges faced by taxpayers under the new GST regime. Notifications were issued, including one on 23.04.2019, allowing those affected to file for revocation by a specified date. Subsequently, another notification on 25.06.2020 clarified the period for filing applications. Due to the Covid-19 pandemic, a further extension was granted through a notification on 29.08.2021. The petitioners argued they were entitled to the extended limitation period and could file their applications by 30th September 2021.Issue 2:The respondents contended that the extension granted through the notification of 29.08.2021 applied only to cases where cancellation orders were issued between 01.03.2020 to 31.08.2020. However, the court disagreed with this narrow interpretation. Considering the impact of the pandemic and the previous notifications providing relief, the court held that the time limit for filing applications should be extended until 30th September 2021 for all affected parties. The court allowed the writ petitions, directing the petitioners to submit their applications for revocation within 30 days from the date of the order, ensuring they are considered within the extended time frame and in accordance with the law.In conclusion, the High Court of Punjab and Haryana granted relief to the petitioners, emphasizing the importance of considering the challenges faced by taxpayers, especially during extraordinary circumstances like the Covid-19 pandemic. The judgment underscored the need for a broader interpretation of notifications to ensure fairness and justice in matters related to the revocation of cancellation of registration under the CGST Act.