M/S Pawan Hosiery Represented Through Its Proprietor Pawan Kumar Jaiswal vs. The Principal Commissioner CGST And Cx

Held

The Court held that Notification No. 3/2023-Central Tax dated 31.03.2023 is beneficial in nature, providing an opportunity for registered persons whose GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act, 2017, on or before December 31, 2022, to apply for revocation of cancellation. This includes those whose appeals against cancellation orders were rejected on grounds of delay under Section 30 of the Act. The petitioner's case, where the appeal against GST registration cancellation was rejected as time-barred under Section 107(1) and (4) of the CGST Act, falls within the scope of this beneficial provision. The Court directed the petitioner to approach the proper officer with an application for revocation of cancellation by June 30, 2023, after complying with the conditions stipulated in the notification, including furnishing due returns and paying any amounts due towards tax, interest, penalty, and late fees. The impugned order of cancellation and the order affirming it in appeal shall not impede the proper officer's consideration of the revocation application.

Facts

The petitioner, M/s. Pawan Hosiery, Bokaro, filed a writ application challenging the order dated 16.12.2022, passed by the Superintendent CGST & CX, Bokaro (respondent no. 2), cancelling its GST registration. The cancellation was due to failure to furnish returns for a continuous period of six months. The petitioner contended that a similar matter was disposed of in W.P.(T) No. 1009 of 2023 and that the present application falls under the purview of Notification No. 3 of 2023 dated 31.03.2023, issued by the CBIC. The respondents did not dispute these contentions. The judgment refers to a previous order in W.P.(T) No. 1009 of 2023 where the petitioner had failed to comply with Section 29(2)(b) and (c) of the CGST Act.

Key Issues

1. Whether the petitioner, whose GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act, 2017, on or before December 31, 2022, and who failed to apply for revocation within the time specified in Section 30 of the said Act, can avail the benefit of Notification No. 3/2023-Central Tax dated 31.03.2023? Petitioner's contention: The petitioner argued that their case falls under the category of cases covered by Notification No. 3 of 2023 dated 31.03.2023, and therefore, the writ application should be disposed of in terms of the order passed in a similar matter, W.P.(T) No. 1009 of 2023. Revenue's contention: The respondents did not dispute the petitioner's contentions regarding the applicability of the notification and the previous order.