2022 (10) TMI 955 - HC - VAT and Sales Tax

Court extends benefits to Petitioner challenging Registration Certificate cancellation for tax return failure.

Mary Constructions, Represented by its Proprietor Versus The Principal Secretary / Commissioner of Commercial Taxes, The State Tax Officer

The Court extended benefits granted in a previous case to a Petitioner challenging the cancellation of their Registration Certificate for failure to file ... Cancellation of the Registration Certificate of petitioner - cancelled on the premise that the Petitioner has failed to file Goods and Services Tax monthly returns for a continuous period of six months - Certificate was cancelled with effect from 04.02.2020 in view of Section 29 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- This Court has been consistently following the directions issued in the case of TVL. SUGUNA CUTPIECE CENTER VERSUS THE APPELLATE DEPUTY COMMISSIONER (ST) (GST) , THE ASSISTANT COMMISSIONER (CIRCLE) , SALEM BAZAAR [2022 (2) TMI 933 - MADRAS HIGH COURT] and the Revenue/Department has also accepted the said view as evident from the fact that no appeal has been filed in any of the matters, this Court intends to follow the above order of this Court. This Court feels that the benefit extended by this Court in the earlier orders referred in Suguna Cutpiece Centre's case, may be extended to the Petitioner - Petition disposed off. Issues:Challenge to the cancellation of Registration Certificate due to failure to file Goods and Services Tax monthly returns for six months. Petitioner's appeal delay due to medical reasons. Application of directions issued in a previous case. Consistent application of previous court orders in similar cases.Analysis:The Writ Petition challenges the cancellation of the Registration Certificate based on the Petitioner's failure to file Goods and Services Tax monthly returns for a continuous period of six months, as per Section 29 of the Central Goods and Services Tax Act, 2017. The Petitioner, represented by Mr. A. Srinivasan, argued that unawareness of the cancellation was due to medical ailments related to COVID-19, which caused a delay in filing an appeal within the stipulated time frame. The learned counsel referred to a previous case, Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner, where specific directions were issued for similar circumstances, emphasizing the filing of returns, payment of tax, interest, fines, and fees within a specified period.The Court acknowledged the consistent application of the directions issued in the Tvl.Suguna Cutpiece case in subsequent judgments such as M/s.Maaruthi Foundations Private Limited Vs Deputy Commissioner and others. It noted that the Revenue/Department had accepted this view, as evidenced by the absence of appeals filed. Consequently, the Court decided to extend the benefits granted in previous cases to the present Petitioner. The judgment ordered the Writ Petition to be decided in line with the terms specified in the Tvl.Suguna Cutpiece case, without imposing any costs. Additionally, connected Miscellaneous Petitions were closed following the decision.In conclusion, the judgment highlights the importance of following established legal precedents and directions issued in previous cases to ensure consistency and fairness in decision-making. It underscores the Court's willingness to extend benefits granted in earlier judgments to petitioners facing similar circumstances, thereby upholding principles of equity and justice in matters related to Goods and Services Tax regulations and cancellations of Registration Certificates.