Md. Rekibuddin Ahmed vs. Union Of INDIA And 3 Ors

WP(C)/1689/2023HC GauhatiGSTCNR GAHC01006368202323 March 2023Bench: HONOURABLE MR. JUSTICE SANJAY KUMAR MEDHI3 pages

AI SummaryRemanded

Facts

The petitioner, Md. Rekibuddin Ahmed, engaged in works contract business, obtained GST registration. Due to reasons beyond his control, including the Covid-19 pandemic, he failed to file returns regularly. Consequently, a show cause notice was issued on March 15, 2022, proposing cancellation of his GST registration. An order dated April 7, 2022, was subsequently issued cancelling the registration. The petitioner argued that this cancellation has severely hampered his business and sought urgent restoration. The respondents, represented by the GST authorities, stated that registration could be revoked if up-to-date returns were filed and all due taxes and statutory dues were paid as per Rule 23 of the CGST Rules, 2017. The petitioner indicated willingness to clear any outstanding dues.

Held

The Court held that there was no justification for keeping the matter pending. With the consent of both parties, the writ petition was disposed of. The respondents were directed to restore the GST registration of the petitioner immediately upon the petitioner filing the required returns and depositing all statutory dues, in accordance with Rule 23 of the CGST Rules, 2017. The Court emphasized that this exercise should be carried out as expeditiously as possible. The reasoning was based on the petitioner's undertaking to clear all dues and the respondents' submission regarding the procedure for revocation of cancellation. No issue was expressly left undecided.

Key Issues

1. Whether the GST registration of the petitioner should be restored, considering the circumstances leading to its cancellation and the petitioner's willingness to comply with statutory requirements? (Question of law and fact, concerning the interpretation and application of relevant CGST Rules). Contentions: Petitioner: Argued that the cancellation of GST registration has severely hampered business activities and sought urgent restoration. Relied on the principle that business activities should not be unduly obstructed due to procedural lapses, especially when caused by unforeseen circumstances like the pandemic. Respondents: Submitted that the cancellation of GST registration can be revoked immediately upon the petitioner filing up-to-date returns and paying all due taxes and statutory dues as per Rule 23 of the CGST Rules, 2017. No specific precedents or circulars were cited.

Sections Cited

Rule 23

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

Page No.# 1/3 GAHC010063682023 THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : WP(C)/1689/2023 MD. REKIBUDDIN AHMED S/O- BORSIRUDDIN AHMED, R/O- FATUAL GAON, FURKATING CHARIALI, P.O. AND P.S. FURKATING, DIST.- GOLAGHAT, ASSAM, 785610 VERSUS UNION OF INDIA AND 3 ORS REP. BY THE SECRETARY 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 GOLAGHAT ASSAM 4:THE SUPERINTENDENT CENTRAL GOODS AND SERVICE TAX GOLAGHAT-2 JORHAT ZONE 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 15.03.2022 was issued to the petitioner as to why its GST registration should not be cancelled. Thereafter, the impugned order dated 07.04.2022 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.

Page No.# 3/3

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