M/S P J Construction vs. Union Of INDIA And 3 Ors

WP(C)/1691/2023HC GauhatiGSTCNR GAHC01006370202323 March 2023Bench: HONOURABLE MR. JUSTICE SANJAY KUMAR MEDHI3 pages

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Facts

The petitioner, M/s P J Construction, a partnership firm engaged in works contract, had obtained GST registration. However, due to reasons beyond its control, including the Covid-19 pandemic, the petitioner failed to file returns regularly. Consequently, a show cause notice dated 23.11.2021 was issued for cancellation of its GST registration. The Principal Commissioner of Central Goods and Service Tax, GST Bhawan, Guwahati, through the Assistant Commissioner, Central Goods and Service Tax, Dibrugarh Division, and the Superintendent, Central Goods and Service Tax, Naharkatia-I, issued an order dated 09.12.2021 cancelling the petitioner's GST registration. The petitioner filed a writ petition seeking urgent restoration of its registration, stating that the cancellation has seriously hampered its business activities.

Held

The Court held that the GST registration of the petitioner, M/s P J Construction, should be restored. The reasoning was based on the agreement between both parties. The revenue's submission that the registration could be revoked upon filing up-to-date returns and depositing all statutory dues as per Rule 23 of the CGST Rules, 2017, was accepted. The petitioner's counsel affirmed that the client had already deposited necessary dues and would pay any further amounts payable under the Rules. Therefore, there was no justification for keeping the matter pending. The Court directed the respondents to restore the GST registration immediately upon the petitioner filing the returns and depositing the statutory dues in accordance with Rule 23 of the CGST Rules, 2017. The exercise was to be carried out expeditiously. No issue was expressly left undecided.

Key Issues

1. Whether the GST registration of the petitioner, M/s P J Construction, should be restored, considering the reasons for non-filing of returns and the subsequent cancellation order. This issue turns on the interpretation and application of Rule 23 of the CGST Rules, 2017. Petitioner's contention: The petitioner argued that due to circumstances beyond its control, including the Covid-19 pandemic, it could not file returns regularly. The cancellation of registration has severely impacted its business, and an urgent order for restoration is required. Revenue's contention: The respondents, represented by the learned Standing Counsel, submitted that the cancellation of GST registration can be revoked immediately if the petitioner files up-to-date returns and pays the due tax amount along with other statutory dues, as per Rule 23 of the CGST Rules, 2017. The petitioner's counsel agreed to comply with any further payment requirements.

Sections Cited

Rule 23

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Cause title — parties, addresses and appearances

Page No.# 1/3 GAHC010063702023 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1691/2023 M/S P J CONSTRUCTION A PARTNERSHIP FIRM HAVING ITS REGD. OFFICE AT DULIA GAON, ANANDAPARA, P.O., P.S. DULIAJAN, DIST.- DIBRUGARH, ASSAM, REP. BY ITS PARTNER SRI PORANJYOTI GOGOI VERSUS UNION OF INDIA AND 3 ORS REP. BY THE SECY. TO THE GOVT. OF INDIA DEPTT. OF FINANCE 2:THE PRINCIPAL COMMISSIONER OF CENTRAL GOODS AND SERVICE TAX GST BHAWAN KEDAR ROAD GUWAHATI- 781001 ASSAM 3:THE ASSISTANT COMMISSIONER CENTRAL GOODS AND SERVICE TAX DIBRUGARH-DIVISION ASSAM 4:THE SUPERINTENDENT CENTRAL GOODS AND SERVICE TAX NAHARKATIA-I DIST.- DIBRUGARH ASSA Advocate for the Petitioner : MR. A K GUPTA Advocate for the Respondent : DY.S.G.I. Page No.# 2/3 BEFORE HONOURABLE MR. JUSTICE SANJAY KUMAR MEDHI

ORDER 24.03.2023

Heard Ms. M. Nirola, learned counsel for the writ petitioner. Also heard Shri S.C. Keyal, learned Standing Counsel, GST, appearing for the respondents.

The petitioner firm is engaged in the business of executing works contract and therefore, is required to have GST registration. The petitioner had accordingly obtained GST registration but due to certain reasons beyond the control of the petitioner, which includes the Covid-19 Pandemic, the petitioner could not file its return regularly. Situated thus, a show cause notice dated 23.11.2021 was issued to the petitioner as to why its GST registration should not be cancelled. Thereafter, the impugned order dated 09.12.2021 has been issued cancelling the GST registration of the petitioner.

Ms. Nirola, the learned counsel submits that due to cancellation of the GST registration, the petitioner’s business activities has been seriously hampered. Under the circumstances, an urgent order for restoration of the GST registration is required to be passed by this Court.

Shri Keyal, learned Standing Counsel submits on instruction that cancellation of the GST registration of the petitioner can be revoked with immediate effect if he files up-to-date return and pays the tax amount due along with other statutory due as per Rule 23 of the CGST Rules, 2017. 5. Ms. Nirola, learned counsel for the petitioner submits that her client has already deposited all necessary dues but if any further amount is still payable under the Rules, the same will be paid.

If that be so, there is no justification for keeping this matter pending before

Page No.# 3/3 this Court any further. Therefore, with the consent of both the sides, this writ petition is being disposed of by directing the respondents to restore the GST registration of the petitioner immediately on filing return along with deposit of statutory dues by the petitioner, in accordance with the Rules 23 of the CGST Rules 2017

The aforesaid exercise be carried out as expeditiously as possible.

With the above observation, the 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.