Raman Subash vs. The Superintendent Of CGST And Excise

Held

The Court allowed the writ petition, directing the respondent to restore the petitioner's GST registration. The Court acknowledged that while Notification No. 03/2023-Central Tax dated March 31, 2023, granted an extension for taxpayers whose cancellations were on or before December 31, 2022, the petitioner's cancellation occurred on January 12, 2023. However, the Court found that the petitioner's case warranted consideration for extension, especially as the period of consideration for extension was pending. The Court also noted that the issue was covered by the judgment in *Tvl. Suguna Cut Piece’s case*. The reasoning was that the petitioner's circumstances, including his inability to access the show cause notice and the subsequent cancellation, coupled with the spirit of the amnesty schemes and extensions, justified relief. The ratio decidendi is that genuine hardship and procedural lapses, where the taxpayer is willing to comply with tax obligations, should be considered sympathetically, and the benefit of extensions or amnesty schemes should be extended where equitable, even if the strict letter of the notification is not met. The Court directed the petitioner to file returns and pay tax and penalty as per law after restoration.

Facts

The petitioner, Raman Subash, a construction company, had its GST registration (No. 33KYSPS7763C1ZN) cancelled by the Superintendent of CGST & C.Excise, Madurai Rural South, on January 12, 2023. The cancellation was based on the petitioner's failure to file GST returns for the past six months. The petitioner contended that due to his accountant's ill health, returns were not filed, and he was unaware of the show cause notice dated January 3, 2023, as he is not proficient in computer access. The petitioner also argued that the cancellation order was arbitrary and lacked details. He had filed returns up to January 2023 and was willing to pay late fees and taxes if registration was revoked.

Key Issues

1. Whether the cancellation of the petitioner's GST registration is liable to be quashed as illegal and arbitrary, considering the petitioner's inability to access the show cause notice due to lack of computer proficiency and the subsequent failure to respond within the stipulated time, thereby violating principles of natural justice? 2. Whether the petitioner is entitled to the benefit of the amnesty scheme or extensions granted by government notifications, despite the cancellation date falling outside the specified period, given the circumstances of non-filing and the pendency of consideration for extension? Petitioner's arguments: The petitioner argued that the cancellation was illegal and arbitrary, citing the Supreme Court's exclusion of the period from March 15, 2020, to February 28, 2022, for limitation calculations in suo motu petitions. He relied on the Madras High Court's judgment in *Tvl. Suguna Cut piece Vs Appellate Deputy Commissioner (ST) (GST)*, which condoned delays in revoking cancelled GSTN registrations. The petitioner also pointed out that Notification No. 03/2023-Central Tax dated March 31, 2023, extended time for taxpayers whose cancellations were on or before December 31, 2022, and argued that his cancellation on January 12, 2023, should also be considered favorably. He claimed he was unaware of the show cause notice due to his lack of computer proficiency. Respondent's arguments: The respondent did not present any arguments in the judgment.