2022 (3) TMI 85 - HC - GST

Taxpayer Challenges GST Registration Suspension for Non-Filed Returns, Seeks 24-Month Payment Plan Under Section 80

M/s. Koluthara Exports Ltd., Versus Union Of India, State Of Kerala, The Commissioner Of State Goods And Services Tax, Thiruvananthapuram, The State Tax Officer, Alappuzha

The HC addressed a case involving GST registration suspension due to non-filing of returns. The petitioner sought relief through a writ petition ... Cancellation of GST registration - Seeking extension of time for payment of their amounts due, which is pending consideration - non-filing of return for a continuous period of six months - HELD THAT:- A direction can be issued to the Commissioner to dispose of Exhibit P1 within a time frame until such time, Exhibit P8 proceedings can be directed to be kept in abeyance. The writ petition is disposed of directing the Commissioner of State Goods and Services Tax Department - 3rd respondent to finalise Exhibit P1 within three weeks from the date of receipt of a copy of this judgment. Petitioner is directed to appear before the 4th respondent on 24.01.2022 as directed therein and appraise the situation of pendency of the application before the Commissioner. Issues:1. Suspension and potential cancellation of GST registration due to non-filing of returns.2. Petitioner seeking relief through writ petition for extension of time for GST liability payment.3. Interpretation of Section 80 of the Central Goods and Services Tax Act regarding time extension powers.4. Disposal of Exhibit P1 application by the Commissioner within a specified timeframe.Issue 1: Suspension and potential cancellation of GST registrationThe petitioner, having GST registration, failed to submit returns for six months, resulting in the issuance of Exhibit P8 notice by the State Tax Officer for suspension and potential cancellation of GST registration. The petitioner submitted applications (Exhibits P9 and P10) before the 4th respondent, which are pending consideration. The petitioner argued that without a final decision on the pending application, they cannot effectively contest the suspension and cancellation proceedings.Issue 2: Relief sought through writ petition for extension of time for GST liability paymentThe petitioner sought relief through the writ petition, requesting the quashing of Exhibit P8 notice and the granting of 24 installments to pay the GST liability arising from self-assessment of business activities. The petitioner emphasized the need for time extension to settle the GST liability.Issue 3: Interpretation of Section 80 of the Central Goods and Services Tax ActThe petitioner invoked Section 80 of the Central Goods and Services Tax Act, claiming that the Commissioner has the authority to extend time. The State argued that Section 80 might not directly apply but acknowledged the need for consideration by the appropriate authority. The court opined that the Commissioner should finalize the pending Exhibit P1 application within three weeks to address the petitioner's concerns regarding time extension.Issue 4: Disposal of Exhibit P1 application by the CommissionerThe court directed the Commissioner of State Goods and Services Tax Department to conclude the processing of Exhibit P1 within three weeks from the date of the judgment. The petitioner was instructed to inform the 4th respondent about the pending application status. Consequently, the final proceedings related to Exhibit P8 and the replies submitted by the petitioner (Exhibits P9 and P10) were postponed for six weeks, with parties guided by the Commissioner's decisions on the Exhibit P8 application.In conclusion, the court provided specific directions to address the petitioner's concerns, emphasizing the need for timely processing of applications and maintaining transparency in the decision-making process related to GST registration suspension and cancellation.