Smti. Purnima Barman vs. Union Of INDIA And 4 Ors
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The petitioner, SMTI. PURNIMA BARMAN, engaged in renting immovable property, 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. Consequently, an order dated September 14, 2021, cancelled the petitioner's GST registration. An appeal filed by the petitioner against this order was rejected by the appellate authority as time-barred. The petitioner sought urgent restoration of its GST registration, arguing that its business activities were seriously hampered by the cancellation.
Held
The Court held that the GST registration of the petitioner could 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. The petitioner's counsel confirmed that the client had already deposited necessary dues and would pay any further amounts payable under the Rules. Given this consensus, the Court found no justification to keep the matter pending. Therefore, with the consent of both parties, the writ petition was disposed of with a direction to the respondents to restore the petitioner's GST registration immediately upon the petitioner filing the required returns and depositing the statutory dues in accordance with the Rules. The Court directed this exercise to be carried out expeditiously.
Key Issues
1. Whether the petitioner's GST registration, cancelled due to non-filing of returns, should be restored, considering the circumstances including the COVID-19 pandemic and the subsequent rejection of the appeal as time-barred? The petitioner argued that the cancellation of GST registration has severely hampered its business operations and sought an urgent order for restoration. The petitioner contended that the reasons for non-filing were beyond its control, including the COVID-19 pandemic. The petitioner also indicated willingness to deposit any further amounts due under the rules. The respondents, represented by the learned Standing Counsel, GST, submitted on instruction that the cancellation could be revoked if the petitioner files up-to-date returns and pays all due tax and statutory amounts 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 renting of immovable property 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 14.09.2021 has been issued cancelling the GST registration of the petitioner.
The appeal preferred by the petitioner against the impugned order dated 14.09.2021 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.
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.