2022 (7) TMI 507 - HC - GST

GST registration cancellation deadline extended to May 2022, wrong remedy filing treated as bona fide mistake

Shri. Pandarakandiyil Moideenkutty, Versus The Superintendent Of Central Tax And Central Excise, Kerala, The Joint Commissioner (Appeals), State Goods & Services Tax Department, Kozhikode, Goods And Services Tax Network, The Commissioner Of State Taxes, Thiruvananthapuram

The Kerala HC allowed a writ petition concerning revocation of GST registration. The petitioner's registration was cancelled on 02.02.2021, with a 30-day ... Revocation of registration of petitioner - time limit for applying for the revocation of registration was expired or not - HELD THAT:- The facts of this case show that the registration the petitioner was cancelled on 02.02.2021. The petitioner had time of 30 days from 02.02.2021 to file an application for revocation. The said period of 30 days could be extended by a period of 30 days by the Joint Commissioner, going by the provisions contained in Section 30 of the CGST Act. If one were to apply the directions issued by the Hon’ble Supreme Court in IN RE: COGNIZANCE FOR EXTENSION OF LIMITATION [2021 (1) TMI 261 - SC ORDER] to the periods of limitation prescribed by Section 30 of the CGST Act, it can be held, without any difficulty, that the petitioner had time till 28.05.2022 to file an application for revocation. The petitioner filed an appeal and possibly, by bona fide mistake, did so on 20.11.2021. This can only be seen as a availing of a wrong remedy by the petitioner. If that date was taken as the application for revocation, the period of the application for revocation can be treated as one filed within time. This writ petition is allowed and it is directed that if the petitioner files a fresh application for revocation within seven days from the date of receipt of a certified copy of this judgment, the same shall be treated as one filed on 20.11.2021 and the orders shall be passed by the 1st respondent, treating the application as one filed within time. Issues:1. Cancellation of GST registration due to non-filing of returns.2. Applicability of Section 30 of the CGST Act for revocation of registration.3. Challenge to the cancellation order through an appeal under Section 107 of the CGST Act.4. Interpretation of statutory provisions and constitutional rights.5. Comparison with judgments from other High Courts.6. Impact of COVID-19 pandemic on limitation periods.7. Relief sought by the petitioner and legal consequences.Detailed Analysis:1. The petitioner, a business proprietor, had their GST registration cancelled on 02.02.2021 due to non-filing of returns. The cancellation was in accordance with the provisions of the Central Goods and Services Tax Act and Kerala State Goods and Services Tax Act of 2017.2. Section 30 of the CGST Act provided a 30-day time limit for applying for revocation of registration, extendable by a further 30 days by the Joint Commissioner. The petitioner did not file an application for revocation within the stipulated period.3. The petitioner subsequently challenged the cancellation order through an appeal under Section 107 of the CGST Act before the Appellate Authority, which was rejected on 09.03.2022.4. Legal arguments raised by the petitioner included contentions based on constitutional rights, citing judgments from the Madras High Court emphasizing the right to carry on trade and commerce and the need for reasonable restrictions.5. Reference was made to judgments from other High Courts, such as the Gujarat High Court and Madhya Pradesh High Court, supporting the restoration of registration in cases of non-filing of returns, especially during the COVID-19 pandemic.6. The impact of the COVID-19 pandemic on limitation periods was highlighted, with the period from 15.03.2020 to 28.02.2022 being excluded for limitation purposes by orders of the Supreme Court.7. The court, after considering arguments from both sides and legal precedents, granted relief to the petitioner. The petitioner was directed to file a fresh application for revocation within seven days, treating the previous appeal as filed within time, but legal consequences of non-compliance would still apply.This detailed analysis covers the various legal issues involved in the judgment, including statutory provisions, constitutional rights, judicial interpretations, and the impact of external factors like the COVID-19 pandemic on legal proceedings.