2022 (10) TMI 867 - HC - GST

GST Registration Dispute Resolved: Petitioner Granted Opportunity to Rectify Procedural Non-Compliance and Submit Pending Returns

HC allowed the petition challenging GST registration cancellation. The court remanded the matter back to tax authorities, directing a fresh review of the ... Cancellation of GST registration for non-filing of returns - appeal under Section 107 of the CGST Act - remand for fresh consideration - opportunity of hearing - submission of pending GST returns and payment of tax arrearsCancellation of GST registration for non-filing of returns - remand for fresh consideration - opportunity of hearing - submission of pending GST returns and payment of tax arrears - Order dated 26.11.2019 cancelling the petitioner's GST registration was set aside and the matter remanded to respondent No.1 for fresh consideration with direction to afford opportunity of hearing. - HELD THAT: - Petitioner's GST registration was cancelled on the ground of non-filing of returns. The petitioner explained inability to pursue the statutory appeal because the managing partner underwent major spinal surgery and subsequently suffered incapacitation, which constrained the other partner from attending to business affairs. On consideration of the circumstances and submissions, the High Court concluded that the ends of justice are met by setting aside the cancellation order and remitting the matter to respondent No.1 to reconsider the case afresh. The court directed respondent No.1 to give the petitioner a due opportunity of hearing before passing any fresh order and permitted the petitioner to submit outstanding GST returns and pay any tax arrears as per law. The remand is to be executed within two months from receipt of this order. [Paras 7, 8, 9]Order dated 26.11.2019 cancelling GST registration set aside; matter remanded to respondent No.1 to reconsider afresh with opportunity of hearing and liberty to submit returns and pay arrears within two months.Final Conclusion: Writ petition allowed by setting aside the cancellation order; matter remanded for fresh adjudication in accordance with law with directions to afford hearing and permitting submission of returns and payment of arrears within the stipulated two month period. Issues:Petition seeking quashing of order cancelling GST registration based on non-filing of returns. Analysis:The petitioner, a partnership firm providing horticulture and nursery services, filed a petition under Article 226 seeking to quash the order dated 26.11.2019 by respondent No.1, which cancelled their GST registration due to non-filing of returns. The petitioner was registered under the CGST Act and TGST Act. A showcause notice was issued on 14.11.2019 for not filing all GST returns, to which the petitioner replied on 23.11.2019. However, the reply was not accepted, leading to the cancellation of registration. The petitioner's counsel argued that due to the managing partner's health issues, including a spinal surgery and subsequent amputation of both legs, they could not file an appeal under Section 107 of the CGST Act. The court considered the circumstances and decided to remand the matter back to respondent No.1 for a fresh decision in accordance with the law.The High Court set aside the order dated 26.11.2019 and directed respondent No.1 to reconsider the petitioner's case regarding the cancellation of GST registration. The court emphasized that respondent No.1 must provide a fair hearing to the petitioner before passing any new order. The court instructed that this process should be completed within two months from the date of receiving the order. Additionally, the petitioner was given the opportunity to submit all pending GST returns and clear any tax arrears as required by the law. The court concluded the writ petition without imposing any costs and closed any related pending miscellaneous petitions.