Vijay Kumar Jain vs. Central Goods And Service Tax And Central Excise Through The Commissioner CGST And Cx

Held

The Court held that Notification No. 03/2023-Central Tax, dated March 31, 2023, is beneficial in nature and provides a window of opportunity for registered persons whose GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act for non-compliance. The notification allows such persons to apply for revocation of cancellation up to June 30, 2023, provided they furnish all pending returns up to the effective date of cancellation and pay the due tax, interest, penalty, and late fees. The Court noted that the explanation to the notification specifically includes cases where appeals against cancellation orders or orders rejecting revocation applications were rejected on grounds of time bar under Section 107 of the Act. Therefore, the petitioner, whose appeal was rejected as time-barred under Section 107(1) and (4), falls within the purview of this beneficial notification. The Court directed the petitioner to approach the proper officer with an application for revocation of cancellation of registration by June 30, 2023, complying with the conditions stipulated in the notification. The Court clarified that the impugned cancellation order and the appellate order would not impede the proper officer's consideration of the revocation prayer under Notification No. 03/2023.

Facts

The petitioner, Vijay Kumar Jain, filed a writ petition challenging an order dated February 17, 2023, which rejected his appeal against an order dated May 12, 2022, cancelling his GST registration. The order-in-original cancelling the registration was passed by the Superintendent, CGST & CX, Range-Chaibasa Rural, Jamshedpur, and the appellate order was passed by the Commissioner (Appeals) and Additional Commissioner (Appeals). The petitioner's GST registration was cancelled under Section 29(2)(b) or (c) of the CGST Act. The petitioner sought to quash these orders and restore his GST registration. The respondents, including the Commissioner, CGST & CX, Jamshedpur, and other appellate authorities, were represented. The petitioner argued that a new notification, Notification No. 03/2023-Central Tax, issued on March 31, 2023, provided a window for revocation of cancelled registrations.

Key Issues

1. Whether the petitioner can avail the benefit of Notification No. 03/2023-Central Tax, dated March 31, 2023, for revocation of his GST registration, given that his appeal against the cancellation order was rejected as time-barred under Section 107(1) and (4) of the CGST Act? Petitioner's contention: The petitioner argued that Notification No. 03/2023 provides a beneficial opportunity for registered persons whose GST registration was cancelled on or before December 31, 2022, to apply for revocation of cancellation up to June 30, 2023, even if they failed to apply within the time prescribed under Section 30 of the CGST Act. He emphasized that the explanation to the notification clarifies that it includes persons whose appeals against cancellation orders or orders rejecting revocation applications were rejected on grounds of failing to adhere to time limits under Section 30. The petitioner is ready to comply with the conditions of the notification, including furnishing pending returns and making payments. Revenue's contention: The respondent CGST counsel acknowledged that while a counter-affidavit was not filed, they agreed that the petitioner could avail the opportunity under Notification No. 3/2023 by following the prescribed conditions. They noted that the petitioner's appeal was rejected as time-barred under Section 107(1) and (4) of the CGST Act.