M/S National Book Binder vs. State Of Haryana And Others

Facts

These 22 writ petitions were filed by various petitioners, including M/s National Book Binder, M/s Bhoomika Constructions, and M/s Aban Exim Pvt. Ltd., challenging orders related to the cancellation of their GST registrations. The petitioners were aggrieved by the cancellation of their registrations, which occurred on or before December 31, 2022. The core issue revolved around the inability of these petitioners to apply for revocation of their cancelled registrations within the stipulated timeframes. The revenue authorities, represented by the State of Haryana, Union of India, and others, were the respondents. The procedural history indicates that the petitioners approached the High Court due to their grievance concerning the cancellation of their GST registrations and the subsequent inability to seek revocation.

Held

The Court held that the petitioners could apply for revocation of their cancelled GST registrations within an extended period as provided by Notification No. 03/2023-Central Tax dated March 31, 2023. This notification, issued under Section 148 of the CGST Act, 2017, allows registered persons whose registrations were cancelled under Section 29(2)(b) or (c) on or before December 31, 2022, to apply for revocation until June 30, 2023. The application is permissible only after furnishing all due returns up to the effective date of cancellation and paying any outstanding tax, interest, penalty, and late fees. The Court reasoned that this executive instruction provided a mechanism to address the grievances of such registered persons who had failed to adhere to the original time limits. The Court directed the petitioners to make an application for revocation on the portal when it becomes operational, as per the rules. The respondents were instructed to pass appropriate orders on these applications expeditiously, acknowledging that the petitioners were suffering due to the cancellation of their registrations. The ratio decidendi is that executive instructions can provide a remedy for procedural lapses in GST registration revocation, extending timelines for eligible persons.

Key Issues

1. Whether the petitioners, whose GST registrations were cancelled on or before December 31, 2022, and who failed to apply for revocation within the time limit specified under Section 30 of the CGST Act, 2017, can be granted an extended period to apply for revocation of cancellation of registration? The petitioners argued that they were suffering due to the cancellation of their registrations and sought a remedy. They relied on the principle that the law should not cause undue hardship and that procedural technicalities should not defeat substantive justice, especially when a remedy is available through executive instructions. The respondents, through learned counsel for the revenue, placed on record Notification No. 03/2023-Central Tax dated March 31, 2023. This notification provided a specific procedure and an extended timeline for revocation of cancelled registrations for a defined class of registered persons.