Ashutosh Ghosh vs. Union Of INDIA And 4 Ors.
Original PDF →Facts
The petitioner, Ashutosh Ghosh, engaged in cab services, obtained GST registration but failed to file returns regularly due to reasons including the COVID-19 pandemic. A show cause notice was issued on January 5, 2021, proposing cancellation of registration. Subsequently, an order dated December 14, 2021, was passed by the Assistant Commissioner, Central Goods and Service Tax, Guwahati, cancelling the petitioner's GST registration. The petitioner filed an appeal against this order, which was pending before the Joint Commissioner (Appeals). The petitioner approached the High Court seeking urgent restoration of their GST registration, stating that its cancellation severely hampered business operations.
Held
The Court held that the GST registration of the petitioner could be restored immediately upon the petitioner filing up-to-date returns and depositing all statutory dues as per Rule 23 of the CGST Rules, 2017. The reasoning was based on the submission made by the learned Standing Counsel for GST, who, on instruction, stated that revocation is possible under these conditions. The petitioner's counsel confirmed that the petitioner had already deposited necessary dues and would pay any further amount payable under the Rules. Therefore, the Court found no justification for keeping the matter pending. The operative direction was for the respondents to restore the GST registration immediately upon the petitioner fulfilling the stated conditions. No issue was expressly left undecided.
Key Issues
1. Whether the GST registration of the petitioner should be restored immediately, considering the disruption to their business activities caused by its cancellation. (Question of law and fact, turning on the interpretation and application of relevant GST provisions concerning registration cancellation and restoration). Petitioner's contention: The petitioner argued that the cancellation of their GST registration has seriously hampered their business activities and therefore, an urgent order for its restoration is required from the Court. Revenue's contention: The respondents, represented by the learned Standing Counsel, GST, submitted on instruction that the cancellation of the GST registration can be revoked with immediate effect if the petitioner files up-to-date returns and pays the due tax amount along with other statutory dues as per Rule 23 of the CGST Rules, 2017.
Sections Cited
Rule 23
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Cause title — parties, addresses and appearances
ORDER 24.02.2023 Heard Shri RS Mishra, 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 providing cab service 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 outbreak of COVID-19 pandemic, the petitioner could not file its return regularly. Situated thus, a show cause notice dated 05.01.2021 was issued to the petitioner as to why its GST registration should not be cancelled. Thereafter, the impugned order dated 14.12.2021 has been issued cancelling the GST registration of the petitioner.
The appeal preferred by the petitioner against the impugned order dated 14.12.2021 is pending before the appellate authority.
Shri Mishra, 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.
Taking note of the grievance of the petitioner, this Court has directed the learned Standing Counsel, GST to obtain instructions and appraise this Court as to whether, any immediate relief can be granted to the petitioner.
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Today, when the matter is called up, 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. 7. Shri Mishra, learned counsel for the petitioner submits that his client has already deposited all necessary dues but if any further amount is still payable under the Rules, the same will be paid.
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.
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.