M/S. Hanuman Agro Products vs. The Assistant Commissioner Of

Facts

The petitioner, M/s. Hanuman Agro Products, filed a writ petition seeking to quash an order dated 12.11.2021 cancelling its GST registration and an endorsement dated 17.10.2022. The registration was cancelled due to non-filing of returns. The petitioner contended that the delay in seeking revocation was due to the COVID-19 pandemic and non-receipt of payments from government agencies, constituting bona fide reasons and sufficient cause. The petitioner had filed returns for March-2021 to September-2021 but was unable to file subsequent returns or seek revocation within the prescribed thirty days due to portal closure. The respondent, the Assistant Commissioner of Commercial Taxes, argued that the petition had no merit.

Held

The Court held that the petitioner had made out sufficient cause for seeking revocation of the cancellation of its GST registration. The Court noted that the representation filed by the petitioner clearly indicated that the inability and omission to seek revocation within the prescribed period were due to bona fide reasons, unavoidable circumstances, and sufficient cause. Adopting a justice-oriented approach, the Court decided to set aside the impugned endorsement dated 17.10.2022 and directed the respondent to reconsider the petitioner's claim for revocation of the GST registration cancellation. This reconsideration was to be done without reference to the period of limitation and in accordance with the law, as expeditiously as possible. The Court explicitly stated that this order was made in the peculiar/special facts and circumstances of the case and should not be treated as a precedent.

Key Issues

1. Whether the petitioner has made out sufficient cause for the delay in seeking revocation of GST registration cancellation, considering the impact of the COVID-19 pandemic and non-receipt of payments from government agencies? The petitioner argued that the omission to seek revocation within the prescribed thirty days was due to bona fide reasons, unavoidable circumstances, and sufficient cause, specifically citing the prevailing COVID-19 pandemic and non-receipt of payments from its purchasers, who are primarily government agencies. The petitioner also stated that it was ready to pay tax by filing returns, but the portal was closed. The respondent, represented by the learned Additional Government Advocate, contended that there was no merit in the writ petition.