Smti. Rekhamoni Goswami vs. Union Of INDIA And 3 Ors

Held

The Court held that the petitioner should be provided an opportunity to approach the respondent GST authorities with an application seeking revocation of her GST registration certificate. This decision was influenced by previous orders of co-ordinate benches of the High Court in similar matters and the petitioner's willingness to furnish pending returns and clear all tax dues, including interest and late fees. The Court directed that the petitioner should submit such an application, along with pending returns and payments, within 15 days from the date of the order. The respondent GST authorities were directed to consider the matter of revocation expeditiously, without commenting on the merits of the case. The writ petition was disposed of with these observations and directions.

Facts

The petitioner, Smt. Rekhamoni Goswami, proprietor of M/s New India Electricals, was issued a GST registration certificate on May 18, 2018. A show cause notice was issued on January 4, 2021, proposing cancellation of her registration for non-furnishing of returns for six months. The petitioner claims she was not conversant with online procedures and missed the deadline to reply. She later updated returns and attempted to file for revocation, but the GST portal indicated the 270-day time limit for revocation applications had expired. The cancellation of her registration has jeopardized her business.

Key Issues

1. Whether the petitioner should be granted an opportunity to seek revocation of her cancelled GST registration, despite the expiry of the statutory time limit for filing such an application? Petitioner's contention: The petitioner argued that the cancellation of her GST registration has severely impacted her business and that she is ready to furnish all pending returns and make full payment of tax dues, interest, and late fees. She relied on orders from co-ordinate benches of the High Court in similar cases (W.P.[C] no. 887/2023 and W.P.[C] no. 5752/2023) where the court allowed petitioners to approach authorities for restoration of registration. Revenue's contention: The respondent GST authorities, represented by Mr. S.C. Keyal, did not dispute the petitioner's reliance on previous orders. They submitted that they would consider revocation of the cancellation if the petitioner submits an application, provided she furnishes all pending returns and makes full payment of tax dues, interest, and late fees as prescribed under the CGST Act and Rules.