Narang Ribya vs. The Union Of INDIA And 3 Ors
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The petitioner, Narang Ribya, challenged a GST registration cancellation order dated 02.05.2023, issued by the Superintendent, Central Goods and Service Tax, Ziro. The cancellation was due to the petitioner's failure to file GST returns. The petitioner contended that they had since filed all pending returns and paid outstanding dues as per Rule 23 of the CGST Rules, 2017. This fact was not disputed by the respondents. The High Court had previously directed the respondents to ascertain if the present writ petition was covered by a prior decision of a Coordinate Bench in WP(C) No.6232/2022.
Held
The Court held that the grievance raised in the present writ petition was fully covered by the Court's previous order dated 29.09.2022, passed in WP(C) No.6232/2022. The Court noted that the petitioner had submitted that they had already filed upto-date returns and paid the tax amount due along with outstanding statutory dues, as per Rule 23 of the CGST Rules, 2017, and this was not disputed by the respondents. Consequently, the Court directed the respondents to restore the GST registration of the petitioner forthwith upon the petitioner filing the return and depositing the statutory dues in accordance with the Rules. The Court further directed respondent No.3 to intimate the petitioner regarding outstanding statutory dues within fifteen (15) days from the date of the order, to enable the petitioner to file returns and make necessary deposits. The ratio decidendi is that subsequent compliance with filing returns and paying dues, as per Rule 23, should lead to the restoration of GST registration when the non-compliance was the sole ground for cancellation.
Key Issues
1. Whether the GST registration cancellation, based on non-filing of GST returns, is valid when the petitioner has subsequently filed all pending returns and paid statutory dues as per Rule 23 of the CGST Rules, 2017? The petitioner argued that they had rectified the non-compliance by filing all pending returns and paying the due tax amounts and statutory dues, as permitted under Rule 23 of the CGST Rules, 2017. The petitioner contended that their subsequent compliance should lead to the restoration of their GST registration. The respondents, represented by the learned DSGI, submitted that the present issue was fully covered by a previous order of the High Court in WP(C) No.6232/2022, implying that the Court's stance on similar matters would apply.
Sections Cited
Rule 23
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Heard together (2 matters)
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Page No.# 1/3 GAHC040009012024
THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) (ITANAGAR BENCH) Case No. : WP(C)/283/2024 Narang Ribya Son of Late Narang Habung, resident of 40, Club road, Ziro Circle, Lower Subansiri District, Arunachal Pradesh 791120 VERSUS The Union of India and 3 Ors represented by the Secretary, Govt of India, Ministry of Finance, New Delhi 110001 2:The Commisioner Age: 0 Occupation : Central Goods and Services Tax and Central Excise Itanagar Sector A Naharlagun 791110 3:The Assistant Commissioner Age: 0 Occupation : Central Goods and Services Tax and Central Excise Itanagar Sector A Naharlagun 791110 4:The Superintendent Age: 0 Occupation : Ziro Central Goods and Services Tax Itanagar Rang Advocate for the Petitioner : Ravi Shankar Mishra
Page No.# 2/3 Advocate for the Respondent : Marto Kato
BEFORE HON’BLE MR. JUSTICE KARDAK ETE
Date : 05.08.2024. Heard Mr. R.S. Mishra, learned counsel for the petitioner. Also heard Mr. M. Kato, learned DSGI for the respondents. By filing his Writ Petition, the petitioner has put to challenge the Reference No.ZA120523000231L, dated 02.05.2023, passed by the Superintendent, Central Goods and Service Tax, Ziro, whereby the GST Registration of the petitioner has been cancelled, as the petitioner has failed to file his GST Return. This Court, while issuing notice to the respondents, on 23.07.2024 had directed the learned DSGI to obtain instructions whether the instant Writ Petition is covered by the decision of the Coordinate Bench of this High Court, decided on 29.09.2022, in WP(C) No.6232/2022. Today, Mr. M. Kato, learned DSGI in his usual fairness has submitted that the present issue is fully covered by the order of this Court passed in WP(C) No.6232/2022. The learned counsel for the petitioner submits that the petitioner has already filed the upto date return and paid the tax amount due along with outstanding statutory dues, as per Rule 23 of the CGST Rules, 2017. The same has not been disputed by the learned DSGI. Having considered the submissions and considering that the grievance raised in this Writ Petition is fully covered by the order of this Court dated
Page No.# 3/3 29.09.2022, passed in WP(C) No.6232/2022, this Writ Petition is disposed of by directing the respondents to restore the GST Registration of the petitioner forthwith on filing the return along with deposit of statutory dues by the petitioner, in accordance with the Rules. The same shall be carried out as expeditiously as possible. Within fifteen (15) days from today, 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 and make necessary deposits, if any. The Writ Petition stands disposed of with the above direction.
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.