M/S Creative Industrial Security Force PVT LTD Through Its Director Sinku Tiwary vs. Union Of INDIA Through The Principal Commissioner Central Goods And Service Tax (CGST)

Held

The Court noted that the petitioner's appeal against the cancellation of GST registration was rejected as time-barred under Section 107(1) and (4) of the CGST Act. However, the Court took cognizance of Notification No. 03/2023-Central Tax, dated 31.03.2023, issued by the CBIC. This notification, being beneficial in nature, provides a special procedure for revocation of cancelled registrations. It allows registered persons whose registrations were cancelled under Section 29(2)(b) or (c) on or before December 31, 2022, to apply for revocation up to June 30, 2023. This benefit extends to those whose appeals against cancellation orders or rejection of revocation applications were rejected on grounds of failing to adhere to time limits. The Court reasoned that this notification was intended to ameliorate difficulties faced by such registered persons. Therefore, the writ petition was disposed of with a direction to the petitioner to approach the proper officer with an application for revocation by June 30, 2023, complying with the conditions stipulated in Notification No. 03/2023. The impugned orders of cancellation and affirmation in appeal were not to impede the proper officer's consideration of the revocation application.

Facts

The petitioner, M/s Creative Industrial Security Force Pvt. Ltd., approached the Jharkhand High Court challenging the cancellation of its GST registration. The cancellation was initiated by a show cause notice dated 02.12.2021 for failure to furnish returns for six months, leading to an Order-in-Original dated 24.02.2022 by the Superintendent, CGST & Central Excise, Ranchi. The petitioner's appeal against this order was rejected by the Additional Commissioner (Appeals) via Order-in-Appeal dated 03.01.2023, primarily on the grounds of not filing the appeal within the time limit prescribed under Section 107(1) & 107(4) of the CGST Act, 2017, read with Rule 109A(1) of the CGST Rules, 2017. The petitioner contended that it had filed all GSTR-3B returns for FY 2021-22 and paid GST till September 2022.

Key Issues

1. Whether the petitioner's GST registration, cancelled vide Order-in-Original dated 24.02.2022 and affirmed by Order-in-Appeal dated 03.01.2023, should be quashed and set aside, and the registration restored, considering the petitioner had paid GST till September 2022 and filed returns for FY 2021-22? Petitioner's arguments: The petitioner argued that it had fulfilled its GST liabilities and filed returns, and that the cancellation of registration was causing significant business disruption. It relied on Notification No. 03/2023-Central Tax, issued by CBIC, which provides a window for revocation of cancelled registrations, even for those whose appeals were rejected on time-bar grounds. The petitioner sought to avail this beneficial provision. Revenue's arguments: The Respondent CGST acknowledged that the appeal was rejected as time-barred under Section 107(1) and (4) of the CGST Act. They did not object to the petitioner availing the opportunity provided by Notification No. 3/2023, subject to compliance with its conditions.