Md Naushad Alam vs. Union Of INDIA Through The Principal Commissioner Central Goods And Service Tax

Held

The Court acknowledged that the petitioner's GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act, and his appeal against this cancellation was rejected as time-barred under Section 107(1) and (4). However, the Court noted the issuance of Notification No. 03/2023-Central Tax by the CBIC on 31.03.2023, which provides a beneficial procedure for revocation of cancelled GST registrations. This notification allows registered persons whose registration was cancelled on or before 31st December 2022 to apply for revocation up to 30th June 2023, provided they furnish all due returns up to the effective date of cancellation and pay any outstanding tax, interest, penalty, and late fees. Crucially, the Explanation to the notification clarifies that it includes persons whose appeals against cancellation orders or rejection of revocation applications were rejected on grounds of failing to adhere to the time limits specified in Section 30 of the Act. The Court found the notification to be beneficial and intended to ameliorate difficulties faced by such registered persons. Therefore, the Court disposed of the writ petition with a direction to the petitioner to approach the proper officer with an application for revocation of cancellation by 30th June 2023, in compliance with the conditions of Notification No. 03/2023. The Court held that the impugned orders of cancellation and affirmation in appeal would not impede the proper officer from considering the revocation prayer under the beneficial notification.

Facts

The petitioner, Md. Naushad Alam, filed a writ petition challenging the cancellation of his GST registration by the Superintendent, CGST Urban Dhanbad, vide an order dated 23.01.2020, which was based on a show cause notice dated 20.12.2019. The petitioner contended that the show cause notice was invalid as it lacked crucial details like place, date, and time for furnishing a reply. The cancellation order was affirmed in appeal, which the petitioner argued was rejected as time-barred under Section 107 of the CGST Act. The petitioner sought to revive his GSTN, which had been cancelled. The respondents are the Principal Commissioner and other officials of CGST, Central Revenue.

Key Issues

1. Whether the cancellation order of GSTN, based on a show cause notice lacking essential details, is valid under the CGST Act? 2. Whether the petitioner can avail the benefit of Notification No. 03/2023-Central Tax, issued on 31.03.2023, for revocation of his cancelled GST registration, even if his appeal against the cancellation was rejected as time-barred? Petitioner's arguments: The petitioner argued that the initial show cause notice was invalid due to missing information. More importantly, he contended that Notification No. 03/2023 provides a beneficial window for registered persons whose GST registration was cancelled on or before 31st December 2022, allowing them to apply for revocation until 30th June 2023, even if they failed to apply within the time prescribed under Section 30 of the CGST Act. This notification, he submitted, also covers cases where appeals against cancellation orders or rejection of revocation applications were dismissed on grounds of delay, as was his situation. He expressed readiness to comply with the conditions stipulated in the notification, including furnishing pending returns and making payments. Revenue's arguments: The Respondent CGST acknowledged that while a counter-affidavit was not filed, they agreed that the petitioner could avail the opportunity provided by Notification No. 3/2023 by following the prescribed conditions. They confirmed that the petitioner's appeal was rejected as time-barred under Section 107(1) and (4) of the CGST Act.