High Court Reinstates GST Registration After Procedural Review, Allowing Taxpayer Opportunity to Rectify Defaults Without Extra Penalties

HC allowed the writ petition challenging GST registration cancellation. Despite being beyond the limitation period, the court followed precedent from a similar case (Tvl.Suguna Cutpiece). The petitioner was granted opportunity to file returns, pay defaulted tax with interest, subject to specified conditions, without imposing additional costs.

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Issues involved:
The petition seeks to quash the order of cancellation of Registration in Reference No.ZA331119091311U, dated 21.11.2019 and requests direction to revoke the cancellation of Petitioner's GSTIN.33BTSPM3665D1ZH.

Summary:

Issue 1: Appeal rejection based on limitation period
The Petitioner, unaware of the cancellation of Registration Certificate, learned about it later and filed an appeal which was rejected by the appellate authority citing it was beyond the limitation period. The learned counsel for the Petitioner argued that similar circumstances in previous cases led to directions being issued for filing returns, paying defaulted tax with interest, and other conditions within a specified time frame.

Issue 2: Legal sustainability of rejection
The Senior Standing Counsel for the Respondents contended that the appellate authority must adhere to the prescribed limitations and the rejection of the appeal beyond the limitation period is legally sustainable. The consistent view taken in similar matters by the Court, with no challenges from the revenue, indicates finality of previous orders.

Judgment:
The Court noted the consistent approach in previous cases and the acceptance of the same by the Revenue/Department, as evidenced by the lack of appeals filed. Following the directions issued in the case of Tvl.Suguna Cutpiece, the Court extended the benefits to the Petitioner. Consequently, the writ petition was allowed on the same terms as mentioned in the earlier order, with no costs imposed.

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