M/S Sun Light Enterprise vs. Union Of INDIA And 2 Ors

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 reasoning was based on the submission made by the learned Standing Counsel for GST, on instruction, that this was the condition for revocation. The petitioner's counsel agreed to comply with any further requirements. Therefore, the Court directed the respondents to restore the GST registration of the petitioner immediately upon the petitioner filing the return and depositing the statutory dues in accordance with the Rules. The Court also directed respondent no. 3 to intimate the petitioner within 10 days regarding any outstanding statutory dues to enable compliance. No issue was expressly left undecided.

Facts

The petitioner, M/s Sun Light Enterprise, a partnership firm engaged in works contract, obtained GST registration. However, due to reasons including the COVID-19 pandemic, the petitioner failed to file returns regularly. Consequently, a show cause notice was issued on 04/01/2021, leading to an order dated 02/02/2021 cancelling its GST registration. The petitioner filed an appeal against this order, which was pending. The petitioner approached the High Court via a writ petition seeking urgent restoration of its GST registration, stating that the cancellation severely hampered its business. The Court directed the respondents to obtain instructions regarding immediate relief.

Key Issues

1. Whether the GST registration of the petitioner should be restored immediately, considering the circumstances leading to its cancellation and the impact on the petitioner's business activities, as per the provisions of the CGST Act and Rules? Petitioner's contention: The petitioner argued that the cancellation of its GST registration has seriously hampered its business activities and sought an urgent order for its restoration. The petitioner also stated that it had already deposited all necessary dues and would pay any further amounts payable under the Rules. Revenue's contention: The respondent, represented by the learned Standing Counsel, GST, submitted on instruction that the cancellation of the petitioner's GST registration 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.