Smti Gichak Daniam vs. The State Of Ap And 2 Ors
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The petitioner, Smti Gichak Daniam, proprietor of M/s Gabharu Infracon Private Limited, challenged a communication dated 21.10.2022 from the Superintendent of Taxes, Itanagar Zone-II, cancelling her GST registration effective 13.09.2022. The cancellation was based on a show-cause notice issued on 13.09.2022, citing 'auto-generated details of your inward supplies for the period from 13.09.2022 to 20.09.2022' and a failure to file returns within one week. The petitioner sought revocation of the cancellation. The petitioner contended that she had filed returns and paid outstanding dues as per Rule 23 of the GST Rules, 2017, up to the cancellation date.
Held
The Court held that the case of the petitioner was covered by the order passed by a coordinate bench of the High Court in WP (C) 6232/2022 (M/s W.G. Resorts (Assam) Private Limited-vs- Union of India &3 Ors.). The Court was of the view that the grievances in the present writ petition, seeking a direction to revoke the cancellation of GST registration upon payment of tax and statutory dues, were similar to the aforementioned case. The Court reasoned that the petitioner had submitted that she had filed returns and paid dues as per Rule 23 GST Rules, 2017. Therefore, the Court directed the respondent authorities to restore the GST registration of the petitioner upon filing the return and depositing the statutory dues in accordance with the applicable Rules. The revocation of cancellation was to be carried out within 25 days, with the respondent No. 3 to intimate the petitioner of outstanding dues. The benefit was granted subject to the payment of all dues, including those prior to the cancellation.
Key Issues
1. Whether the cancellation of GST registration is liable to be revoked, considering the petitioner's claim of having filed returns and paid dues as per Rule 23 GST Rules, 2017? (Question of law and fact, turning on Section 29 of the CGST Act, 2017 and Rule 23 of the GST Rules, 2017). Petitioner's arguments: The petitioner argued that her case is similar to that of M/s W.G. Resorts (Assam) Private Limited vs. Union of India & 3 Ors., decided by a coordinate bench of the High Court, and therefore, similar relief should be granted. She further submitted that she has already filed the return and paid the tax amount due along with outstanding statutory dues as per Rule 23 GST Rules, 2017, till the date of cancellation. Revenue's arguments: The State acknowledged that the cited order from a coordinate bench covers the petitioner's case. However, it pointed out a factual difference, stating that the petitioner failed to respond to the show-cause notice and no return was filed until the cancellation of GST registration.
Sections Cited
Section 29, Rule 23
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
2025 Heard Mr. Ravi Shankar Mishra, learned counsel for the petitioner.
Page No.# 2/4 Also heard Ms. G. Ete, learned Addl. Sr. Govt. Advocate for State respondent Nos. 1 to 3. 2. Challenge made in this writ petition is to the communication dated 21.10.2022 issued by the Superintendent of Taxes, Itanagar Zone-II/ respondent No. 3, whereby the GST registration of the petitioner is ordered to be cancelled. The petitioner prayed for a direction to revoke the cancellation of GST registration.
The petitioner is engaged in the business of execution of contract works under the name and style of M/s Gabharu Infracon Private Limited, a proprietorship concern of which the petitioner is the sole proprietor.
The petitioner is registered under the provisions of the Arunachal Pradesh Goods and Services Tax Act, 2017 bearing registration No.12CBGPD5633M1ZR. The respondent No. 3 issued a Show-Cause Notice to the petitioner on 13.09.2022, whereby, the petitioner was directed to show cause as to why the registration of the petitioner shall not be cancelled for the reason ‘auto-generated details of your inward supplies for the period from 13.09.2022 to 20.09.2022’. The petitioner was further asked to file returns within one week to avoid cancellation of registration and thereby, directed the petitioner to furnish a reply to the aforesaid show cause notice within 30 days from the date of service of the notice with a further direction to the petitioner to appear before the respondent No. 3 on 20.09.2022. Thereafter, GST registration of the petitioner vide bearing registration No. 12CBGPD5633M1ZR was cancelled w.e.f. 13.09.2022. 5. Mr. Ravi Shankar Mishra submits that the order of a coordinate bench
Page No.# 3/4 of this Court passed in WP (C) 6232/2022 on 29.09.2022(M/s W.G. Resorts (Assam) Private Limited-vs- Union of India &3 Ors.) covers the case of the petitioner as the facts and issues are similar. Therefore, he submits that similar relief may be granted to the petitioner.
Ms. G. Ete, learned Addl. Sr. Govt. Advocate while agreeing to the fact that the above order passed by a coordinate bench of this Court covers the case of the petitioner, submits that there is a slight difference in the facts as the petitioner has failed to respond to the show cause and the records indicates that no return has been filed till the cancellation of the GST registration.
Mr. Shankar, learned counsel for the petitioner, however, submits that the petitioner has already filed the return and paid the tax amount due along with the outstanding statutory dues as per Rule 23 GST Rules, 2017 till the date of cancellation of the GST registration.
Having considered the submissions of the learned counsel for the parties and on perusal of the order dated 29.09.2022 passed in Writ petition (Supra) and considering that the grievances in this writ petition is for a direction to revoke the cancellation of the GST registration and on payment of the tax amount due to the petitioner and also taking note of the order dated 29.09.2022, I am of the view that above order dated 29.09.2022 covers the case of the petitioner. Accordingly, this writ petition is disposed of by directing the respondent authorities to restore the GST registration of the petitioner on filing the return along with the deposit of the statutory dues by the petitioner in accordance with the applicable Rules.
Page No.# 4/4
The revocation of the cancellation of GST registration shall be carried out as expeditiously as possible but not later than 25 days from today and the respondent No. 3 shall intimate the petitioner as regards the outstanding statutory dues as payable so as to enable the petitioner to file return, if any. It is made clear that similar benefit is granted to the petitioner subject to the payment of all the dues including prior to cancellation of GST registration. Writ petition stands disposed of.
JUDGE Comparing Assistant
Reproduced from the public record of the Gauhati High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.