GST registration cancellation petitions allowed despite missing amnesty schemes, following M. Mallika Mahal precedent

The Madras HC allowed petitions for cancellation of GST registration. Despite petitioners missing multiple post-cancellation amnesty schemes, the court followed precedent from M. Mallika Mahal case. The court permitted petitioners to file outstanding returns for the pre-cancellation period within 45 days, along with defaulted tax, interest, penalties and fees for belated filing. Both petitioners' and respondents' counsel agreed this precedent applied to all pending writ petitions, resulting in uniform relief being granted.

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Issues:
Challenge to cancellation of registrations under the Tamil Nadu Goods and Services Tax Act, 2017 - Failure to avail remedies under Section 30 and appeal before the Appellate Authority - Judicial consideration of identical issues in previous cases - Implementation of directions in previous order dated 31.01.2022 - Application of previous order to present writ petitions.

Analysis:
The High Court of Madras considered a batch of writ petitions challenging the cancellation of registrations under the Tamil Nadu Goods and Services Tax Act, 2017. The Court noted that the petitioners had missed opportunities provided through Amnesty Schemes to restore their cancelled registrations. Two remedies were available for revocation of cancellation: one under Section 30 to be availed within thirty days, and the other through an appeal before the Appellate Authority within three months from the date of communication of the cancellation order. Most petitioners had not availed either remedy, except for a few who had belatedly filed appeals accompanied by returns and admitted tax amounts.

In some cases, the appellate authority rejected the appeals, leading to the filing of the present writ petitions. The Court highlighted a previous order where similarly placed petitioners had approached the assessing authority under Section 30 or appealed the cancellation orders under Section 107. The Court accepted the petitioners' cases in the previous order, imposing certain conditions. The State had sought guidance from the GST Council regarding the previous order but had not received a response, leading the Court to conclude that the State had accepted the order by not challenging it within the stipulated time.

The Court reiterated the directions from the previous order, allowing petitioners to file returns for the period before cancellation, pay defaulted taxes with interest, and fines within forty-five days. The Court clarified that such payments should not be made from unutilized Input Tax Credit. Upon compliance with the payment and return filing, the registrations would be revived immediately. The respondents were instructed to make necessary changes in the GST Web Portal to facilitate these actions within forty-five days from the receipt of the order. As all parties agreed that the previous order would apply to the present writ petitions, the Court passed the same order in the current matters. The writ petitions were allowed, with no costs incurred, and connected miscellaneous petitions were closed.

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