M/S Techvein It Solution Private Limited vs. The Union Of INDIA

CWJC/4085/2023HC PatnaGSTCNR BRHC01019924202311 April 2023Bench: MR. JUSTICE MADHURESH PRASAD,THE CHIEF JUSTICE-2 pages

AI SummaryAllowed

Facts

The petitioner, M/s Techvein IT Solution Private Limited, challenged an order of cancellation of its GST registration dated 25.04.2022, issued by the Superintendent, CGST, Katihar Range. The petitioner argued that the order was a non-speaking order, similar to one considered by a co-ordinate bench of the High Court in a previous case. The revenue authorities pointed to a Notification No. 03/2023 dated 31st March, 2023, which provided relief for persons who had not filed returns, allowing them to file by 30th June, 2023, if their registration cancellation occurred before 31st December, 2022. The petitioner's cancellation order was dated 25.04.2022, falling within the period covered by the notification.

Held

The Court held that the impugned order of cancellation of GST registration dated 25.04.2022 was liable to be set aside. The Court noted the petitioner's submission that the order was non-speaking, a point previously considered by a co-ordinate bench. Crucially, the Court considered the Notification No. 03/2023 dated 31st March, 2023, which offered relief to taxpayers whose registration was cancelled prior to 31st December, 2022, by allowing them to file their pending returns by 30th June, 2023. Since the petitioner's cancellation order was dated 25.04.2022, it fell within the purview of this notification. The Court therefore set aside the impugned order and granted the petitioner liberty to comply with the terms of the notification. The ratio decidendi is that a non-speaking cancellation order can be set aside, and taxpayers should be given the opportunity to avail benefits under subsequent remedial notifications, especially when their case falls within the specified period.

Key Issues

1. Whether the order of cancellation of GST registration dated 25.04.2022, issued by the Superintendent, CGST, Katihar Range, is a non-speaking order and thus invalid, as argued by the petitioner, relying on the precedent set in Manoj Kumar Sah v. The State of Bihar & Anr. (CWJC No.18307 of 2022)? 2. Whether the petitioner is entitled to relief under Notification No. 03/2023 dated 31st March, 2023, which allows for the filing of returns by 30th June, 2023, for registrations cancelled prior to 31st December, 2022, given that the cancellation order in this case is dated 25.04.2022? Contentions: Petitioner: The cancellation order is a non-speaking order, rendering it invalid, and relies on the judgment in Manoj Kumar Sah v. The State of Bihar & Anr. Revenue: The petitioner can avail the benefits of Notification No. 03/2023, which provides a window to regularize non-filing of returns for cancellations prior to 31st December, 2022.

Sections Cited

None explicitly mentioned in the judgment text provided, apart from the general reference to GST registration and returns.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

IN THE HIGH COURT OF JUDICATURE AT PATNA Civil Writ Jurisdiction Case No.4085 of 2023 ====================================================== M/s Techvein IT Solution Private Limited, GSTIN-10AAFCT3401Q1ZH, Add-Mirchaibari, Near JMD Hotel, Katihar, Bihar-854105. Authorised Person Mithilesh Kumar Jha aged 49 years, resident of J84, Mourya Vihar Colony, Kumhrar, C/o Chaudhary Devendra Naryan, Sampatchak, Patna, Bihar- 800026. ... ... Petitioner/s Versus 1. The Union of India through the Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi-110001. 2. The Commissioner, Central GST Central Excise, Patna-II, Patna. 3. The Additional Commissioner, Customs, CGST and CX (Appeals), Patna. 4. The Deputy/Assistant Commissioner, CGST and CX, Purnea Division. 5. The Joint Commissioner, CGST, Katihar Range, Bihar. 6. The Deputy Commissioner, CGST, Katihar Range, Bihar. 7. The Assistant Commissioner, CGST, Katihar Range, Bihar. 8. The Superintendent CGST, Katihar Range, Bihar. ... ... Respondent/s ====================================================== Appearance : For the Petitioner/s : Mr. Subodh Kumar, Advocate For the Respondent/s : Dr. K.N. Singh, ASG Mr. Anshuman Singh, CGC ====================================================== CORAM: HONOURABLE THE CHIEF JUSTICE and HONOURABLE MR. JUSTICE MADHURESH PRASAD

ORAL JUDGMENT (Per: HONOURABLE THE CHIEF JUSTICE) Date : 11-04-2023 The learned counsel for the petitioner is challenging the order of cancellation dated 25.04.2022 issued by the Superintendent, Katihar, as contained in Annexure-3 to the writ petition. The learned counsel for the petitioner would rely on a decision of a co-ordinate Bench of this Court dated 10.01.2023

Patna High Court CWJC No.4085 of 2023 dt.11-04-2023 2/2 passed in CWJC No.18307 of 2022 titled as Manoj Kumar Sah v. The State of Bihar & Anr. and points out that the present impugned order is also a non-speaking order, as has been noticed in that judgment. Learned State counsel points out that there is a Notification bearing No.03/2023 dated 31st March, 2023, wherein relief has been granted to the persons, who have not filed their returns, to file it on or before 30th June, 2023 if the cancellation of registration is prior to 31st December, 2022. In the present case, the impugned order is dated 25.04.2022. In such circumstances, we set aside the impugned order, with liberty to the petitioner to comply with the Notification in its letter and spirit. The writ petition stands allowed with the liberty aforesaid.

shashank/sumit- (K. Vinod Chandran, CJ) ( Madhuresh Prasad, J) AFR/NAFR NAFR CAV DATE NA Uploading Date 13.04.2023 Transmission Date NA

Reproduced from the public record of the Patna High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.