M/S Aich Brothers vs. The Union Of INDIA And 6 Ors.

Held

The Court acknowledged that the petitioner was liable to pay the interest for delayed filing of GSTR-3B returns from October 2018 to April 2020, and that registration restoration was contingent upon this payment. The Court also accepted the petitioner's submission that the cancellation of registration was causing significant hardship in collecting contractual dues. Considering these factors, the Court directed the petitioner to approach the concerned authority, specifically Respondent No. 3 (Assistant Commissioner, CGST, Dibrugarh), with an application to permit payment of the interest liability in installments as a special case, taking into account the Covid-19 pandemic situation. The Court mandated that this application be disposed of within seven days of its receipt. If all dues were cleared as per the authority's direction, the petitioner's registration would be restored immediately. The Court did not expressly leave any issue undecided.

Facts

The petitioner, M/s Aich Brothers, filed a writ petition before the Gauhati High Court challenging the striking off of its GST registration by the respondent GST authorities. The petitioner contended that it had paid all outstanding amounts shown on the GST portal, but its registration was not restored, causing significant difficulties in receiving payments for contractual works. The respondent GST authorities stated that the petitioner owed interest liability of Rs. (73,707X2) for delayed filing of GSTR-3B returns from October 2018 to April 2020. The petitioner expressed readiness to pay this interest, subject to a formal demand, and also requested permission to pay in installments due to financial hardship. The respondent objected to the installment payment proposal.

Key Issues

1. Whether the petitioner's GST registration should be restored upon payment of the outstanding interest liability for delayed filing of GSTR-3B returns for the period October 2018 to April 2020, and if so, under what conditions? 2. Whether the petitioner should be permitted to pay the outstanding interest liability in installments due to financial hardship, considering the impact of the cancelled registration on its ability to collect contractual dues? Petitioner's arguments: The petitioner argued that it had paid all outstanding dues shown on the portal and that the registration should have been restored. It further contended that the cancellation of registration was causing immense difficulties in receiving payments for contractual works. The petitioner sought permission to pay the interest liability in installments due to financial crisis. Revenue's arguments: The respondent GST authorities stated that the petitioner was liable to pay an amount of Rs. (73,707X2) as interest for delayed filing of GSTR-3B returns for the period October 2018 to April 2020. They objected to the petitioner's request to pay the arrears in installments.