M/S. Alankar Engineers vs. The Union Of INDIA

Held

The Court found that in the context of COVID-19, the respondents ought to have made efforts to consider the revocation of the cancellation of registration as per law and the relaxations granted by Notification No. 35/2020. The Court directed the petitioner to file a proper application with reasons for revocation of cancellation of registration with the respondents. The respondents were directed to take a decision on this application strictly in accordance with law within 30 days from the date of the order. The petitioner was permitted to raise all their issues in this application. The order dated 21.04.2020 cancelling the registration was to remain in abeyance until a final decision was taken on the revocation application. The issue regarding the reopening of the portal for TRAN-1 filing was implicitly addressed by directing the petitioner to file an application for revocation, which would allow them to raise all their issues, including those related to previous compliances.

Facts

The petitioner, M/s. Alankar Engineers, filed a writ petition seeking directions to reopen the GST portal for filing Form GST TRAN-1, or to entertain it manually. They also sought to prevent any tax liability, interest, fine, or penalty due to non-filing of TRAN-1, and to set aside an order dated 21.04.2020 cancelling their registration, seeking its restoration. The petitioner highlighted Notification No. 35/2020, which extended various compliances due to COVID-19, including filing of applications and returns, up to June 30, 2020. The respondents contended that the writ petition was premature as no representation against the cancellation of registration was made before filing it, and that the order of cancellation was in accordance with law.

Key Issues

1. Whether the respondents should be directed to reopen the GST portal for the petitioner to file Form GST TRAN-1, or to entertain it manually, considering the circumstances arising from COVID-19 and the extension of time limits provided by Notification No. 35/2020? The petitioner argued that the notification's extension of time for filing applications and returns should apply, allowing them to rectify their non-filing of TRAN-1. The respondents did not explicitly argue against this point, but rather focused on the prematurity of the petition regarding registration cancellation. 2. Whether the order dated 21.04.2020, cancelling the petitioner's GST registration, should be set aside and the registration restored, in light of the COVID-19 pandemic and the aforementioned notification? The petitioner contended that the cancellation was harsh given the pandemic situation and the relaxations provided. The respondents argued that the petition was premature as no prior representation was made to them regarding the cancellation.