Red Fox Events And Entertainment vs. Union Of INDIA Thr The Secretary And Ors
Original PDF →Facts
The Petitioner, M/s. Red Fox Events and Entertainment, a proprietorship engaged in Event Management and Hospitality, filed a writ petition challenging the cancellation of its GST registration. Respondent No. 4 initially issued an order on April 17, 2023, for cancellation due to non-filing of 3B returns for over six months. The Petitioner applied for revocation on April 20, 2023. Respondent No. 3 issued a Show Cause Notice on May 19, 2023, and subsequently rejected the revocation application by an order dated May 31, 2023. The Petitioner appealed this rejection on May 31, 2023, citing unavoidable circumstances for the delay. Respondent No. 2 rejected this appeal on September 14, 2023. The Petitioner approached the High Court, arguing that the lack of a constituted Appellate Tribunal under Section 109 of the Act rendered the writ petition maintainable due to the absence of an alternative efficacious remedy.
Held
The Court held that the impugned orders dated May 31, 2023, and September 14, 2023, were quashed and set aside. The Court found that the Petitioner had regularized its returns up to March 2023 and was willing to regularize future returns within four weeks of the restoration of its GST registration. Therefore, the Petitioner was granted an opportunity to file returns for the period after March 2023. The Court directed the Respondents to restore the Petitioner's GST registration within one week of the order's upload. The Petitioner was ordered to file all GST returns and make all GST payments within four weeks from the date of restoration of its registration. The Court noted that the Petitioner's grievance was that it was not adequately heard in the passing of the impugned orders. The ratio decidendi is that where a taxpayer demonstrates a willingness to regularize past non-compliance and commit to future compliance, and has been prejudiced by procedural lapses or lack of adequate hearing, the GST registration may be restored, subject to strict timelines for compliance.
Key Issues
1. Whether the Petitioner was adequately heard before the rejection of its GST registration cancellation revocation application and subsequent appeal, thereby violating principles of natural justice? 2. Whether the Petitioner's GST registration ought to be restored given its submission that it has now regularized returns up to March 2023 and is willing to regularize future returns within a stipulated period? The Petitioner argued that it was unable to file GST returns due to unavoidable circumstances and that the cancellation of its registration prevented it from filing subsequent returns, rendering it handicapped. It also contended that it had complied with payments and filed returns up to March 2023, and if registration were restored, it would file all pending returns and clear dues within four weeks. The Petitioner relied on the fact that no Appellate Tribunal was constituted, making the writ petition maintainable. The Respondent Revenue argued that if registration were restored, the Petitioner should be directed to file all pending returns and make payments within a fixed period to avoid prejudice to the Revenue.
Sections Cited
Section 109, Central Goods and Services Tax Act, 2017
AI-generated summary — verify with the full judgment below
30-WP-15644-2023.DOC Ashvini Narwade IN THE HIGH COURT OF JUDICATURE AT BOMBAY CIVIL APPELLATE JURI ITION WRIT PETITION NO.15644 OF 2023
M/s. Red Fox Events and Entertainment Age 38, GSTIN 27BHHPK8428D2Z8 having its registered address at A-7, Raghukul CHS Ltd., Opp: MHB Colony, S. V. Road, Dahisar (E), Mumbai 400 068 GST No. 29AAECC4477E1ZJ … Petitioner Versus 1 Union of India through the Secretary, Ministry of Finance, Department of Revenue, North Block, New Delhi 110 001. 2 The Joint Commissioner (Appeals-Thane) Thane Commissionerate 12th Floor, B Wing, Lotus Infocentre, Near Parel Station, Parel (East), Mumbai 400 012. 3 The Deputy/ Assistant Commissioner, Div-I, Thane Commissionerate 3rd Floor, Accel House (GST Bhawan) Plot No.22, Wagle Industrial State, Thane (W), 400 064. 4 The Superintendent, Range – IV, Division-I, Thane Commissionerate 1st Floor, Accel House (GST Bhawan) Plot No.22, Wagle Industrial State, Thane (W), 400 064. …Respondents Mr. Sham Walve a/w. Mr. Ankit Trivedi i/b. India Law Alliance for the Petitioner. Ms. Megha Bajoria i/b. Karan Adik for the Respondent. _______________________ CORAM: G. S. KULKARNI & FIRDOSH P. POONIWALLA, JJ. DATED: 3 January, 2024 _______________________ 3 January, 2024 ASHVINI BAPPASAHEB KAKDE ASHVINI BAPPASAHEB KAKDE Date: 2024.01.11 10:29:29 +0530
30-WP-15644-2023.DOC ORAL JUDGEMENT (Per FIRDOSH P. POONIWALLA,J.):-
This Petition under Article 226 of the Constitution of India is filed praying for the the following final reliefs:- “a. That this Hon'ble Court be pleased to issue a Writ of Certiorari or Writ in the nature of Certiorari or any other appropriate Writ, Order or Direction calling for the records and proceedings dealing with the Impugned Order dated 14th September 2023 passed by the Respondent No.2 (Exhibit ‘F’ hereto) in the Petitioner’s case and after going into the legality, propriety and validity thereof to quash and set aside the same along with the Rejection Order dated 31st May 2023 (Exhibit ‘D’ hereto), as the same been passed in violation of principles of natural justice and thereby revoke the GST registration; b. That this Hon'ble Court be pleased to issue a Writ of Mandamus or Writ in the nature of Mandamus or any other appropriate Writ, Order or Direction directing Respondent No. 2, their servants, subordinates and agents: i. To withdraw the Impugned Order dated 14th September 2023 passed by the Respondent No. 2 (Exhibit 'F' hereto) along with the Rejection Order dated 31st May 2023 (Exhibit 'D' hereto) and thereby restore GST registration; ii. To Further direct the Respondents to allow the Petitioner to file subsequent GST Returns;”
The Petitioner is a registered proprietory concerned engaged in Event Management and Hospitality.
Respondent No.4 issued an Order dated 17th April 2023 for cancellation of the Petitioner’s GST registration under the Central Goods and Services Tax Act, 2017 (“the Act”) wherein it was stated that the Petitioner had not filed its 3B returns for more than six months and therefore the GST registration of the Petitioner was cancelled.
On 20th April 2023, the Petitioner filed an Application for revocation of the said cancellation of registration. A Show Cause Notice dated 19th May 2023 was issued to the Petitioner calling upon the Petitioner to show cause as to why it’s Application for revocation of cancellation of registration should not be rejected for the reasons mentioned in the said Show Cause Notice. 3 January, 2024
30-WP-15644-2023.DOC
It is the case of the Petitioner that, without giving it an opportunity to explain as to why the cancellation of its registration should be revoked, an Order dated 31st May 2023 was passed by Respondent No.3 rejecting the Petitioner’s Application for revocation of the cancellation.
The Petitioner thereafter filed an Appeal in Form GST APL-01 on 31st May 2023, wherein the Petitioner has stated that, due to unavoidable circumstances, the Petitioner failed to file GST returns on time, and gave reasons as to why its GST registration should be restored at the earliest.
Thereafter, by an Order dated 14th September 2023, the Appeal filed by the Petitioner was rejected and the Order dated 31st May 2023 was upheld.
It is the case of the Petitioner that, since no Appellate Tribunal has been constituted under the provisions of Section 109 of the Act, the Petitioner has been compelled to approach this Court by filing the present Writ Petition. It is the case of the Petitioner that the present Writ Petition is maintainable as, due to the Appellate Tribunal not having been constituted, it does not have any other alternative efficacious remedy available to it.
Mr. Walve, the learned Counsel appearing on behalf of the Petitioner, submitted that the Petitioner, in its Appeal filed on 31st May 2023, had specifically stated that it was unable to file the GST returns due to unavoidable circumstances. Further, as the Department had cancelled the GST registration of the Petitioner w.e.f. 9th March 2023, the Petitioner was unable to file subsequent returns. He submitted that the actions of the Department had rendered the Petitioner handicapped as the Petitioner could not file returns even though it was willing to do so. Mr. Walve further submitted that the Petitioner has, on the present date, complied with the payments and has filed the GST returns up to March 2023. He submitted that there are no more delays from the Petitioner’s side and thus the cancelled GST registration of the 3 January, 2024
30-WP-15644-2023.DOC Petitioner should be restored in order to enable the Petitioner to file further returns and make all payments.
Mr. Walve also submitted that, if the GST registration of the Petitioner is restored, the Petitioner, within a period of four weeks from the date of restoration of the GST registration, would file all the returns up to date and clear all the dues. Mr. Walve vehemently submitted that, in the light of the same, the Petitioner’s GST registration ought to be restored.
Ms. Bajoria, the learned Counsel appearing on behalf of the Respondents, submitted that, in the event this Court was inclined to restore the GST registration of the Petitioner, this Court ought to direct the Petitioner to file all the pending returns and make all the GST payments within a fixed period of time so as to cause no prejudice to the Revenue.
Having heard learned Counsel for the parties and considering the peculiar facts of the case and the nature of the impugned orders and the grievance of the Petitioner that the Petitioner was not adequately heard in the impugned orders being passed, we are of the opinion that as now the Petitioner has regularized the returns upto March 2023 and is also willing to regularize the future returns within four weeks from the date the registration is restored, the Petitioner needs to be granted such an opportunity to undertake filing of the returns for the future period after March 2023. 13. In the aforesaid circumstances, and for the aforesaid reasons, we pass the following orders:- a. The impugned orders dated 31st May 2023 and 14th September 2023 are hereby quashed and set aside. 3 January, 2024
30-WP-15644-2023.DOC b. The Respondents are directed to restore the GST registration of the Petitioner within a period of one week from the date of uploading of this Order. c. The Petitioner is hereby ordered and directed to file all the GST returns and make all the GST payments within a period of four weeks from the date of restoration of the Petitioner’s GST registration. d. Rule is made absolute in the aforesaid terms. e. In the facts and circumstances of the case, there will be no order as to costs. (FIRDOSH P. POONIWALLA, J.) (G. S. KULKARNI , J.) 3 January, 2024
Reproduced from the public record of the Bombay High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.