Md. Sirajul Islam vs. Union Of INDIA And 4 Ors
Original PDF →Facts
The petitioner, MD. Sirajul Islam, engaged in works contract business, 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. The Assistant Commissioner subsequently issued an order on May 20, 2021, cancelling the petitioner's GST registration. The petitioner's appeal against this order was rejected by the Joint Commissioner (Appeals) as time-barred. The petitioner filed a writ petition before the Gauhati High Court seeking urgent restoration of their GST registration, stating that its cancellation has seriously hampered business activities.
Held
The Court held that the GST registration of the petitioner can be revoked with immediate effect if the petitioner files up-to-date returns and pays the tax amount due along with other statutory dues as per Rule 23 of the CGST Rules, 2017. The Court noted that the petitioner's counsel submitted that the client has already deposited all necessary dues and will pay any further amount payable under the Rules. Given this submission and the respondent's statement, the Court found no justification for keeping the matter pending. With the consent of both sides, the writ petition was disposed of by directing the respondents to restore the GST registration of the petitioner immediately upon the petitioner filing the required returns and depositing the statutory dues in accordance with the Rules. The Court directed that this exercise be carried out as expeditiously as possible. No issue was expressly left undecided.
Key Issues
1. Whether the GST registration of the petitioner should be restored, considering the circumstances that led to its cancellation and the subsequent rejection of the appeal as time-barred, pursuant to Section 29(1) of the CGST Act, 2017 and Rule 23 of the CGST Rules, 2017. Petitioner's contention: The petitioner argued that due to reasons beyond their control, including the COVID-19 pandemic, they could not file returns regularly. They sought urgent restoration of their GST registration as its cancellation has severely impacted their business. They also stated that they have already deposited all necessary dues and are willing to pay any further amount payable under the Rules. 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
Section 29(1), Rule 23
AI-generated summary — verify with the full judgment below
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 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 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 20.05.2021 has been issued cancelling the GST registration of the petitioner.
The appeal preferred by the petitioner against the impugned order dated 20.05.2021 is rejected by the appellate authority as time barred.
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.
Page No.# 3/3
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.
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.