GST registration cancellation overturned despite non-filing of returns due to managing partner's illness

The Madras HC allowed a writ petition challenging cancellation of GST registration. The petitioner's business continued operating but failed to file GST returns due to the managing partner's ill health. The court directed the petitioner to file a restoration petition, which the respondent must accept within one week. Upon restoration, the petitioner must pay GST dues from July 2022 to December 2022 with interest and penalties within 45 days. The impugned cancellation order was set aside in the interest of justice.

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Issues involved: Challenge to cancellation of GST Registration number due to non-filing of monthly returns without reasonable opportunity of being heard.

Summary:
The petitioner, engaged in trading Blue Metal and construction services, challenged the cancellation of their GST Registration due to non-filing of returns, citing the ill health of the Managing Partner as the reason for the default. The petitioner argued that the cancellation was without a reasonable opportunity of being heard, violating natural justice principles. The petitioner referred to previous court decisions where registration cancellations were restored, emphasizing the need for leniency in such cases.

The court considered the petitioner's submissions and the respondent's argument of default in filing returns. Given the petitioner's continued business operations and the Managing Partner's ill health affecting return filing, the court decided in favor of the petitioner. The court allowed the Writ Petition, setting aside the cancellation order, and directed the petitioner to file a restoration petition. The respondent was instructed to accept the restoration petition and restore the GST Registration number within a week. The petitioner was further directed to pay the outstanding GST dues, interest, and penalties within 45 days of the restoration. No costs were imposed in this matter.

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