Michael Rajkumar v. The Joint Commissioner (Appeals)
BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED : 08.09.2022
CORAM
THE HONOURABLE MR.JUSTICE MOHAMMED SHAFFIQ Michael Rajkumar Proprietor of M/s.M.R.Traders, GSTN 33DDYPM3082E1Z9, 3/201A, Shengol Mani Nagar, Tharuvaikulam, Thoothukudi-628 105.
... Petitioner Vs.
1.The Joint Commissioner (Appeals) Office of the Commissioner of GST and Central Excise (Appeals), Coimbatore Circuit Office, Madurai, No.4, Lal Bahadur Shastri Road, C.R.Buildings, Madurai-625002.
2.The Superintendent of CGST and Central Excise, Vilathikulam, Range.
...Respondents
Prayer : Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, to call for the records on the file of the second respondent in Reference No. ZA330122031886T, dated 10.01.2022 and to quash the same as illegal, arbitrary, and direct the respondents to revoke the cancellation of petitioner's GSTN Registration No.33DDYPM3082E1Z9 within such time as may be directed by this Court.
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For Petitioner : Mr.N.Sudalaimuthu For Respondent : Mr.N.Dilip Kumar Standing Counsel Assisted by Mr.K.Prabhu Junior Standing Counsel
ORDER
This writ petition has been filed challenging the order of cancellation of the Registration Certificate on the premise that the Petitioner has failed to file Goods and Services Tax monthly returns for a continuous period of six months. Consequently, the Registration Certificate was cancelled with effect from 10.01.2022 in view of Section 29 of the Central Goods and Services Tax Act.
2. It is submitted by the learned counsel for the Petitioner that the Petitioner was unaware of the cancellation of the Registration Certificate, as he was diagnosed with medical ailments related to kidney and had to undergo treatment and was in bed rest. The business was carried on by the staff of the petitioner's concern and only a part-time Accountant was taking care of the statutory compliances including filing of GST returns. It was only on being informed by the other end tax payers that the petitioner became aware that his GSTN registration stood cancelled. Thereafter, the Petitioner preferred an appeal before the appellate authority. The appellate authority has rejected the 2/8
appeal vide order dated 05.08.2022 on the ground that it was beyond the period of limitation.
3. It is submitted by the learned counsel for the petitioner that in identical circumstances, this Court, in the case of Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc... batch), dated 31.01.2022, issued the following directions:
"229. In the light of the above discussion, these Writ Petitions are allowed subject to the following conditions: i. The petitioners are directed to file their returns for the period prior to the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid prior to cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty five
(45) days from the date of receipt of a copy of this order, if it has not been already paid.
ii. It is made clear that such payment of Tax, Interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of these petitioners. iii. If any Input Tax Credit has remained utilized, it shall not be utilised until it is scrutinized and approved by an 3/8
appropriate or a competent officer of the Department. iv. Only such approved Input Tax Credit shall be allowed for being utilized thereafter for discharging future tax liability under the Act and Rule.
v. The petitioners shall also pay GST and file the returns for the period subsequent to the cancellation of the registration by declaring the correct value of supplies and payment of GST shall also be in cash.
vi. If any Input Tax Credit was earned, it shall be allowed to be utilised only after scrutinising and approving by the respondents or any other competent authority. vii.The respondents may also impose such restrictions / limitation on petitioners as may be warranted to ensure that there is no undue passing of Input Tax Credit pending such exercise and to ensure that there is no violation or an attempt to do bill trading by taking advantage of this order. viii.On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith. ix. 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 these petitioners to file their returns and to pay the tax/penalty/fine.
x. The above exercise shall be carried out by the respondents within a period of thirty (30) days from the date of receipt of a copy of this order.
xi. No cost.
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xii.Consequently, connected Miscellaneous Petitions are closed."
The same has been consistently thereafter followed by this Court in various decisions, viz., a)M/s.Maaruthi Foundations Private Limited Vs Deputy Commissioner (ST) (FAC), reported in 2022 (5) TMI 405 b)J.Jayakrishnan Vs The Additional Chief Secretary/Commissioner of Commercial Taxes, Chennai reported in 2022 (7) TMI 1226 c)TVL.Jeyalakshmi Store represented by its Proprietor, Sivanu Pandian Vs Commissioner of Commercial Taxes reported in 2022 (7) TMI d)M/s.Pearl and Company Vs The Commissioner of Commercial Taxes in W.P(MD)No.19127 of 2022.
4. It is also submitted by the learned Standing Counsel for the Respondents that it is not open to the appellate authority to pass any orders disregarding the limitations prescribed therein, thus, we cannot find fault with the rejection of the appeal filed by the petitioner inasmuch as admittedly, it is beyond the period of limitation.
5. As stated above, there is a consistent view taken in these matters and to a pointed question, if the revenue has challenged the order of this Court, it 5/8
was stated that appeal has not been preferred. In view of the fact that this Court has been consistently following the directions issued in the case of Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc... batch) and the Revenue/Department has also accepted the said view as evident from the fact that no appeal has been filed in any of the matters, this Court intends to follow the above order of this Court.
6. In view of the same, this Court feels that the benefit extended by this Court in the earlier orders referred to above in Suguna Cutpiece Centre's case cited supra, may be extended to the Petitioner.
7. This writ petition is ordered on the same term mentioned in paragraph 229 of the order of Suguna Cutpiece Centre extracted supra and accordingly, this writ petition is ordered. No costs. 08.09.2022 Index : Yes / No Internet : Yes/ No sn 6/8
To 1.The Joint Commissioner (Appeals) Office of the Commissioner of GST and Central Excise (Appeals), Coimbatore Circuit Office, Madurai, No.4, Lal Bahadur Shastri Road, C.R.Buildings, Madurai-625002.
2.The Superintendent of CGST and Central Excise, Vilathikulam, Range.
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MOHAMMED SHAFFIQ, J.
sn 08.09.2022 8/8