R.Navaneetham v. The Assistant Commissioner
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated : 04.10.2024 Coram The Hon'ble Mr.Justice Krishnan Ramasamy and W.M.P.Nos.32201 and 32203 of 2024 Mrs.R.Navaneetham
...Petitioner
Vs.
1. The Assistant Commissioner Office of the GST & Central Excise BSNL CTO Building, Nellikuppam Main Road, Cuddalore Division, Cuddalore- 607 001.
2. The Superintendent Office of the GST & Central Excise Cuddalore-1 Range, Cuddalore Division BSNL CTO Building, Nelikuppam Main Road, Cuddalore- 607 001.
... Respondents Prayer: This Writ Petition filed under Article 226 of the Constitution of India for issuance of a Writ of Certiorarified Mandamus, to call for the records leading to the issuance of cancellation order bearing reference no.ZA3310230194698 dated 06.10.2023 issued by the 2nd Respondent herein and quash the same and further direct the 2nd Respondent to restore the GST registration of the Petitioner vide GSTIN:33AMBPN9498D2ZQ. 1/7
For Petitioner : Mr.G.Derrick Sam For Respondent : Mr.R.P.Pragadish, Senior Standing Counsel (Tax)
ORDER
The challenge in this writ petition is to the order dated 06.10.2023 passed by the 2nd respondent, cancelling the GST registration of the petitioner.
2. Mr.R.P.Pragadish, learned Senior Standing Counsel (Taxes), takes notice on behalf of the respondents.
3. By consent of the parties, the main Writ Petition is taken up for disposal at the time of admission stage itself.
4. The learned counsel for the petitioner submitted that the Petitioner is a registered tax payer under the GST enactments and he has been filing the GST returns regularly, however, due to financial difficulties, the Petitioner could not file its returns for the continuous period of 6 months. Consequently, the 2nd respondent issued a show cause notice on 05.09.2023, proposing the cancellation of the GST registration for non-filing of returns for a continuous period of six months, and subsequently passing an order of cancellation on 06.10.2023. The learned counsel for the petitioner further submits that due to 2/7
the health condition of the Petitioner, she could not file reply within the stipulated time limit and that apart since the Petitioner incurred huge loss in the business he could not pay the required GST dues and hence could not file the returns. Further, he would submit that now the Petitioner is ready to file the GST returns till date and hence prays to set aside the impugned order.
5. On the other hand, the learned Senior Standing Counsel appearing for the respondents submitted that the petitioner did not file returns for a continuous period of six months, which led to the passing of the impugned order. He further submitted that the petitioner has not paid the outstanding taxes and that revocation of the cancellation of registration will be considered only upon payment of all dues and filing of all returns.
6. Heard the learned counsel on either side and perused the materials available on record.
7. Admittedly, the GST registration of the petitioner was cancelled due to non-compliance in filing returns. Furthermore, the time limit for filing a statutory appeal against the cancellation order had also expired, and the 3/7
petitioner stated that due to the financial condition of the Petitioner, she could not pay GST dues and file the returns. Therefore, this Court is of the view that the reason provided by the petitioner for non-compliance with the relevant provisions of the Act within the stipulated time appears to be genuine.
8. In view of the above, restoration of the GST registration is subject to and conditional upon fulfilling the following conditions : (i) The respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow the petitioner to file the returns and to pay the tax/penalty/fine, within a period of four weeks from the date of receipt of a copy of this order.
(ii) The petitioner is directed to file returns for the period till date, if not filed, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of 4 weeks from the date of restoration of GST Registration of the petitioner.
(iii) It is made clear that such payment of tax, interest, fine/fee etc., shall not be allowed to be made or adjusted from and out of any Input Tax Credit (ITC) which may be lying unutilized or unclaimed in the hands of the petitioner. 4/7
(iv) If any ITC has remained unutilized, it shall not be utilised until it is scrutinized and approved by an appropriate or competent officer of the Department.
(v) Only such approved ITC shall be allowed to be utilized thereafter for discharging future tax liability under the Act and Rules.
(vi) If any ITC was earned, it shall be allowed to be utilised only after scrutinizing and approving by the respondent or any other competent authority.
(vii) If any of the aforesaid conditions is not complied with by the petitioner, the benefit granted under this order will automatically ceased to operate.
9. With the above directions, this writ petition is disposed of. No costs. Consequently, connected miscellaneous petitions are closed. 04.10.2024 Speaking/Non-speaking order Index : Yes / No arr 5/7
To
1. The Assistant Commissioner Office of the GST & Central Excise BSNL CTO Building, Nellikuppam Main Road, Cuddalore Division, Cuddalore- 607 001.
2. The Superintendent Office of the GST & Central Excise Cuddalore-1 Range, Cuddalore Division BSNL CTO Building, Nelikuppam Main Road, Cuddalore- 607 001.
6/7
Krishnan Ramasamy,J., arr 04.10.2024 7/7