2023 (11) TMI 1202 - HC - GST

Taxpayer Wins Appeal: GST Registration Restored Through Amnesty Scheme with Mandatory Tax Arrears Payment and Compliance

HC allowed petitioner's appeal challenging GST registration cancellation, directing compliance with amnesty scheme under Notification No.25/2023-Central ... Rejection of petitioner's appeal filed under Section 107 of the TNGST Act, 2017 against the order cancelling the petitioner's GST registration - appeal rejected by the second respondent on the ground of limitation as the appeal was admittedly beyond the condonable period of limitation under Section 107 of the TNGST Act, 2017 - HELD THAT:- The petitioner has filed the Appeal on 23.05.2023, when, the amnesty scheme under Notification No.25/2023 – Central Tax dated 17.07.2023 was still in force. Considering the above, Court is inclined to direct the second respondent to dispose of the appeal in the light of the amnesty Scheme. It is made clear that the petitioner shall however comply with the other conditions of the Scheme and also deposit the arrears of tax, forthwith. Subject to such compliance the appeal shall be disposed within a period of four weeks from the date of receipt of a copy of this order. Petition disposed off. Issues involved:The petitioner's appeal under Section 107 of the TNGST Act, 2017 against the cancellation of GST registration due to failure to file returns for six months. Applicability of amnesty scheme under Notification No.25/2023-Central Tax. Interpretation of relevant legal provisions and previous court orders.The petitioner challenged the rejection of their appeal against the cancellation of GST registration, which was obtained in 2020 but canceled in 2023 due to non-filing of returns for six months. The appeal was rejected on the grounds of being beyond the condonable period of limitation under Section 107 of the TNGST Act, 2017.The petitioner referred to previous court orders and sought relief by paying arrears of tax and interest to restore registration. The court directed the petitioner to comply with the conditions of an amnesty scheme and deposit arrears of tax for the appeal to be disposed of within four weeks.The respondents argued that the amnesty scheme had expired and cited a Supreme Court decision. They contended that the previous court order cited by the petitioner was not applicable as it was passed under a different amnesty scheme.After considering arguments from both sides, the court directed the second respondent to dispose of the appeal in light of the applicable amnesty scheme. The petitioner was required to comply with the conditions of the scheme and deposit arrears of tax for the appeal to be resolved within four weeks.The writ petition was disposed of with the above observations, with no costs imposed, and connected writ miscellaneous petitions were closed.