Bbk Corporation vs. Union Of INDIA Thr The Secretary Dept. Of Revenue Ministry Of Finance And Ors
Held
The Court held that considering the peculiar circumstances and the concession made by both parties, the impugned order cancelling the GST registration should be set aside. The Court directed the respondents to compute any outstanding dues payable by the petitioner within one week and communicate the same. Upon the petitioner paying the determined amount, their GST registration was to be restored. Additionally, the petitioner was directed to pay Rs. 40,000/- to KEM Hospital, Parel, within a week and provide proof of payment to both the respondents and the Court. The registration was to be restored to facilitate the payment of dues, and within 48 hours of restoration, the petitioner must clear the demanded dues. Failure to do so would allow for cancellation of registration without further notice. The Court explicitly noted that the decision was based on the concession and the peculiar facts of the case.
Facts
The petitioner, BBK Corporation, sought restoration of its GST registration, which was cancelled by an order dated 10 November 2022. The cancellation was due to the petitioner's failure to file returns from May 2022 to October 2022. The petitioner claimed these defaults were for bonafide reasons. Subsequently, on 27 February 2024, the petitioner filed the pending returns and paid the tax, which was accepted by the respondents. The petitioner had also parked Rs. 11,50,000/- in the cash ledger towards GST dues up to January 2024, and expressed willingness to pay any further dues or interest. The respondents indicated they would not object to restoration if all dues, including interest, were paid.
Key Issues
1. Whether the GST registration of the petitioner, cancelled for non-filing of returns, should be restored given the subsequent filing of returns, payment of accepted tax, and willingness to pay further dues and interest, under the peculiar facts and circumstances of the case? Petitioner's contention: The petitioner argued that the cancellation of registration was due to bonafide reasons for non-filing of returns for the period May 2022 to October 2022. They highlighted that the pending returns were subsequently filed on 27 February 2024 and the tax paid was accepted. Furthermore, the petitioner had already parked Rs. 11,50,000/- in the cash ledger towards GST dues and was willing to pay any remaining dues or interest. Therefore, restoration was sought based on these mitigating circumstances. Respondents' contention: The respondents, represented by Ms. Mazumdar, stated that they would not object to the restoration of the petitioner's registration if the petitioner was willing to pay all outstanding dues together with interest.
Sections Cited
Section 129
AI-generated summary — verify with the full judgment below
ppn 1 529.wp-12563.24(1).docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURISDICTION WRIT PETITION NO.12563 OF 2024 BBK Corporation .. Petitioner Versus Union of India & Ors. .. Respondents --- Mr. Prithwiraj Choudhari a/w Mr. Prabhakar Shetty for the petitioner. Ms. Maya Mazumdar a/w Mr. Suman Kumar Das for respondent nos.2 & 3. ---
CORAM : M. S. Sonak & Jitendra Jain, JJ.
DATE: 19 November 2024 P.C.:-
Heard learned counsel for the parties.
Rule. The rule is made returnable immediately at the request and with the consent of the learned counsel for the parties.
The petitioner seeks restoration of the GST registration, which was cancelled vide an impugned order dated 10 November 2022. The learned counsel for the petitioner has submitted that the registration was cancelled only because the petitioner failed to file returns from May 2022 to October 2022. He submitted that such returns could not be filed for genuine and bonafide reasons. The learned counsel for the petitioner submitted that subsequently, on 27 February 2024, the petitioner filed suc
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