2025 (4) TMI 1143

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... aside, if returns are filed for a few months, subsequent to the issuance of show cause notice?" 1. The said question arises for consideration in this writ petition. 2. Petitioner was a taxable person under the CGST/SGST Act. She was engaged in supplying security personnel to various institutions. Due to the failure to submit returns for six continuous months from August 2023 to January 2024, Ext.P1 show cause notice was issued on 12.03.2024, calling upon the petitioner to explain why her registration should not be suspended. Without filing a reply to the show cause notice, petitioner filed returns for two months i.e., for August 2023 and September 2023. However, the first respondent, by order dated 17.04.2024 cancelled the registrati....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....son is liable to be cancelled, if the said person,- xxxxx xxxxx xxxxx (h) being a registered person required to file return under sub-section (1) of section 39 for each month or part thereof, has not furnished returns for a continuous period of six months; 5. Thus, notwithstanding the amendment to Section 29 (2) (c) of the CGST Act, the situation remains the same. If a person fails to file the return for a continuous period of six months, it gives a cause of action to the proper officer to cancel the registration. 6. Rule 22 of the CGST Rules refers to the procedure for cancellation of registration. Proviso to Sub clause (4) of the said provision is relevant for this case and is hence extracted as below :- 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of action that arose due to non filing of returns for six months will not be wiped-off. In order to avoid the serious repercussion of cancellation of registration, it is an obligation for the taxpayer to file all the returns and pay the tax interest and late fee, after the show cause notice was issued. 8. In the instant case, show cause notice was issued on 12.03.2024, while the petitioner filed Ext.P2 return on 13.03.2024 i.e., after the issuance of show cause notice. Two weeks later, she filed returns for yet another month. Still, the requirement of the proviso to Rule 22 (4) was not satisfied. The taxpayer had the liberty to avoid cancellation, by filing returns for all the six months. Once the cause of action arose by issuance of s....