M/S Perfect Investigation vs. Sales Tax Officer Class Ii /Avato, Ward-63, Zone-6, Delhi
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The petitioner, M/s Perfect Investigation, is challenging an order dated April 8, 2022, which cancelled its Goods and Services Tax (GST) registration. The cancellation was based on an allegation of non-filing of returns. The judgment notes that no tax liability or outstanding payments were found to be due from the petitioner. The petitioner, through its counsel, expressed willingness to furnish all pending returns and sought revocation of the cancellation order.
Held
The Court held that the petitioner is at liberty to apply for revocation of the order of cancellation of its GST registration. The petitioner is also permitted to furnish all pending returns for the periods in respect of which there was non-compliance. The Court directed that if such an application is filed within three weeks from the date of the order, the competent authority shall examine the prayer for revocation and dispose of it in accordance with the law. The Court's decision is based on the petitioner's stated willingness to comply with the requirements of Rule 23 of the CGST Rules, 2017, which allows for revocation of cancellation upon furnishing of returns and payment of dues, including interest and penalty.
Key Issues
1. Whether the petitioner is entitled to revocation of GST registration cancellation, given the circumstances of non-filing of returns and the provisions of Rule 23 of the CGST Rules, 2017? The petitioner argued that they are ready to furnish all pending returns and are seeking revocation of the cancellation order as envisaged under Rule 23. They are willing to comply with the conditions for revocation. The respondent (Sales Tax Officer) did not present any arguments in opposition to the petitioner's willingness to comply and seek revocation.
Sections Cited
Rule 23
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Cause title — parties, addresses and appearances
O R D E R %
2024
The writ petitioner is aggrieved by the order dated 08 April 2022 pursuant to which its Goods and Services Tax [‘GST’] registration has been cancelled on an allegation of non-filing of returns. The order would seem to indicate that no tax liability stands foisted upon the petitioner nor are there any outstanding payments due.
It is in the aforesaid context that we bear in consideration Rule 23 of Central Goods and Services Tax Rules, 2017 [‘CGST Rules’], the relevant part whereof is extracted hereinbelow :
“23. Revocation of cancellation of registration (1) A registered person, whose registration is cancelled by the proper officer on his own motion, may submit an application for revocation of cancellation of registration, in FORM GST REG-21, to such proper officer, within a period of thirty days from the date This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/10/2024 at 14:50:01
of the service of the order of cancellation of registration [or within such time period as extended by the Additional Commissioner or the Joint Commissioner or the Commissioner, as the case may be, in exercise of the powers provided under the proviso to sub-section (1) of section 30,] at the common portal, either directly or through a Facilitation Centre notified by the Commissioner: Provided that no application for revocation shall be filed, if the registration has been cancelled for the failure of the registered person to furnish returns, unless such returns are furnished and any amount due as tax, in terms of such returns, has been paid along with any amount payable towards interest, penalty and late fee in respect of the said returns: [Provided further that all returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration:………………..”
Learned counsel for the writ petitioner on instructions state that they are ready and willing to furnish all returns subject to the same being accepted by the respondents and the cancellation order being revoked in terms as envisaged in the aforesaid Rule.
We accordingly dispose of the writ petition by according liberty to the writ petitioner to apply for revocation of the order of cancellation and furnish all Returns for the periods in respect of which there was non-compliance. In case such an application is moved within a period of three weeks from today, the competent authority may examine the prayer for revocation and dispose of the same in accordance with law. YASHWANT VARMA, J. RAVINDER DUDEJA, J. OCTOBER 1, 2024/VLD This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 09/10/2024 at 14:50:01
Reproduced from the public record of the Delhi High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.