Maha Arvind Roadways PVT. LTD. vs. Commissioner Of Central Tax And Ors

Held

The Court accepted the petitioner's statement that they are ready and willing to deposit the admitted outstanding amount of Rs.90,09,874/- within two weeks. The Revenue confirmed that the portal for deposit is open. The Court directed that upon the deposit of Rs.90,09,874/-, the petitioner's registration under the CGST Act read with MGST Act shall stand restored, without prejudice to the rights and contentions of the revenue. The revenue is at liberty to decide the application for restoration of registration upon such deposit and must pass an order within three months from the date of deposit, communicating it to the petitioner within one week thereafter. If the order is adverse, it shall not be implemented for one week from its communication. The Court made it clear that it had not gone into the correctness of the impugned order cancelling the registration and expressed no views on the merits of the communication regarding the total outstanding liability of Rs.3,65,14,056/- as the investigation is pending. The ratio is that upon deposit of admitted dues, registration cancellation can be revoked, subject to further decision by the revenue.

Facts

The petitioner, Maha Arvind Roadways Pvt. Ltd., filed a writ petition challenging an order dated 4th August, 2021, by the Commissioner of Central Tax, which declined to revoke the cancellation of the petitioner's GST registration. The Bombay High Court had previously directed that this order remain in abeyance and asked the Revenue to intimate the petitioner the quantum of balance tax dues. The Revenue stated that the petitioner still owes Rs.90,09,874/- towards GST dues and has not deposited this amount, despite filing Nil GST Returns. The petitioner, through its counsel, agreed to deposit the stated amount within two weeks. The Revenue confirmed that the portal for deposit is open. The Court noted a separate communication from the Superintendent regarding a total GST outstanding liability of Rs.3,65,14,056/-, stating that investigation is pending and made no comment on its merits.

Key Issues

1. Whether the petitioner's GST registration, which was cancelled and subsequently the revocation was declined, should be restored upon deposit of the admitted outstanding tax dues? Petitioner's contention: The petitioner is willing to deposit the admitted outstanding amount of Rs.90,09,874/- and seeks restoration of its GST registration. They rely on the court's earlier order directing the revenue to intimate the balance tax dues and the subsequent agreement to deposit. Revenue's contention: The Revenue argues that the application for revocation of cancellation of registration can only be considered if the petitioner deposits the admitted outstanding amount of Rs.90,09,874/-. They also point out that the petitioner has filed Nil GST Returns, and an assessment order needs to be passed for those returns. They refer to a communication dated 29th December, 2021, confirming the portal is open for deposit.