2022 (12) TMI 341 - HC - GST

GST Registration Cancellation Overturned: Petitioner Granted Relief Through Compliance with Return Filing and Tax Payment Conditions

Tvl. Marimuthu Venkateshwaran, Represented by Proprietor, Venkateshwaran, S/o. Marimuthu Versus The Commissioner, Office of the Principal and Special Commissioner of Commercial Taxes, ChennaiThe Assistant Commissioner (Circle)

The HC allowed the writ petition challenging GST registration certificate cancellation due to non-filing of monthly returns. Following precedent in a ... Cancellation of the Registration Certificate of petitioner - failure to file Goods and Services Tax monthly returns - Section 29 of the Central Goods and Services Tax Act, 2017 - HELD THAT:- In identical circumstances, this Court, in the case of Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others [2022 (2) TMI 933 - MADRAS HIGH COURT], it was held that The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five (45) days from the date of receipt of a copy of this order, if it has not been already paid. This Court has been consistently following the directions issued in the case of Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others 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. Petition disposed off. Issues:Challenge of registration certificate cancellation due to non-filing of Goods and Services Tax monthly returns.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, leading to the cancellation effective from 02.02.2022 under Section 29 of the Central Goods and Services Tax Act, 2017. The Petitioner cited health issues as the reason for non-filing and highlighted a show cause notice issued by the 2nd Respondent followed by the cancellation order on 21.04.2022. The Petitioner was unable to file an application for revocation in time, emphasizing the impact of health issues on compliance.In a similar case, the Court issued specific directions in Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others, dated 31.01.2022, outlining conditions for revocation. These conditions included filing returns for the period before cancellation, payment of defaulted tax with interest, restrictions on utilizing Input Tax Credit, scrutiny of credit utilization, cash payment of GST, and restrictions to prevent misuse. The Court emphasized the need for proper approval and scrutiny before utilizing Input Tax Credit, ensuring compliance and preventing bill trading.The Court noted its consistent application of the directions in various cases like M/s.Maaruthi Foundations Private Limited Vs Deputy Commissioner (ST), J.Jayakrishnan Vs The Additional Chief Secretary/Commissioner of Commercial Taxes, TVL.Jeyalakshmi Store Vs Commissioner of Commercial Taxes, and M/s.Pearl and Company Vs The Commissioner of Commercial Taxes. The Court's adherence to these directions and the Department's acceptance, as indicated by the absence of appeals, led to the decision to extend the benefits granted in previous cases to the current Petitioner.Consequently, the Court decided to follow the order in Tvl.Suguna Cutpiece Centre's case, extending the same terms to the current Petitioner. The judgment reiterated the terms mentioned in paragraph 229 of the Suguna Cutpiece Centre's order, providing relief to the Petitioner in line with the established legal precedent without imposing any costs.