Rockland Media And Communication PVT LTD vs. The Union Of INDIA And 6 Ors

Held

The Court held that while the cancellation of GST registration for non-filing of returns and non-payment of dues is generally valid, the petitioner's willingness to rectify the situation warrants consideration. The Court directed that upon the petitioner's representative meeting with the Superintendent of Goods and Services Tax, Guwahati, the Superintendent would inform the petitioner of the total amount of taxes, interest, and penalty due. The petitioner would then provide a written undertaking in an indemnity bond to pay this amount. Upon receiving this undertaking, the authorities would deem the tax amount as paid and allow the petitioner to operate the portal for TRAN-1 and TRAN-2 transactions. The petitioner would be permitted to utilize any due Cenvat Credit for the actual tax amount, but any interest or penalty would need to be paid in cash. The petitioner retains the liberty to file an application if they believe there was an over-assessment. The Court emphasized the urgency, requiring the petitioner to appear before the Superintendent on November 29, 2022, to ensure completion before the portal closure on November 30, 2022. The writ petition was disposed of in these terms.

Facts

The petitioner, Rockland Media and Communication Pvt. Ltd., filed a writ petition (WP(C) No. 4828/2021) because the GST portal was closed, preventing them from undertaking TRAN-1 and TRAN-2 transactions. This issue was previously addressed by the Supreme Court in Union of India & another v. Filco Trade Centre Pvt. Ltd. & another, directing GSTN to open the portal for two months (September 1, 2022, to October 31, 2022) for such transactions. A circular dated September 9, 2022, from the Central Board of Indirect Taxes and Customs also provided for these directions. However, the petitioner's GST registration was subsequently cancelled by the State authorities due to alleged non-filing of returns and non-payment of GST dues. The petitioner stated their willingness to file all required returns and pay any assessed dues.

Key Issues

1. Whether the petitioner's GST registration, cancelled for alleged non-filing of returns and non-payment of dues, can be restored to enable them to complete TRAN-1 and TRAN-2 transactions, considering their willingness to pay outstanding amounts. Petitioner's argument: The petitioner contended that their inability to complete TRAN-1 and TRAN-2 was due to the portal closure. They expressed willingness to file all pending returns and pay any assessed tax, interest, and penalty. They relied on the Supreme Court's directions in Filco Trade Centre Pvt. Ltd. and a previous High Court order in Mayflower Hotel and Resorts LLP v. the Principal Commissioner and State Goods and Service Tax & ors., which allowed for the restoration of registration upon payment of dues. Revenue's argument: The respondents (State authorities) initially cancelled the registration based on the petitioner's failure to file returns and pay dues. However, the judgment does not record specific arguments from the revenue regarding the restoration of registration or the TRAN-1/TRAN-2 issue in this particular proceeding, beyond their initial action of cancellation.