Tvl. Sri Sastha Canteen vs. The Commissioner Of GST And Central Excise

Held

The Court allowed the writ petition, extending the benefit granted in the case of Tvl.Suguna Cutpiece Centre. This means the petitioner is directed to file all returns for the period prior to the cancellation of registration, if not already filed, along with the defaulted tax, interest, and any applicable fine or fee for belated filing. Payment of tax, interest, fine, and fees will not be allowed to be adjusted from any unutilized Input Tax Credit (ITC). Any utilized ITC will remain unutilized until scrutinized and approved by a competent officer. Only approved ITC can be used for future tax liabilities. The petitioner must also pay GST and file returns for the period subsequent to the cancellation, with payments made in cash. The respondents may impose restrictions to prevent undue passing of ITC or bill trading. Upon payment of dues and uploading of returns, the registration shall be revived. The respondents are to take steps to enable the petitioner to file returns and pay dues through the GST portal. The entire exercise is to be completed within thirty days from the receipt of the order. No costs were awarded.

Facts

The petitioner, Tvl.Sri Sastha Canteen, filed a writ petition seeking to quash an order dated April 13, 2021, passed by the Superintendent, GST, which cancelled their GSTIN registration. The cancellation was due to the petitioner's failure to file GST returns for a continuous period of three months. The petitioner submitted that this non-filing was due to health issues, and they subsequently filed the delayed returns until March 2021. However, they were unable to file an appeal within the stipulated time under the Tamil Nadu Goods and Services Tax Act, 2017, due to these circumstances. The petitioner sought the revocation of the cancellation of their GSTIN.

Key Issues

1. Whether the cancellation of the petitioner's GSTIN registration, due to non-filing of returns for three consecutive months, should be quashed and the registration restored, considering the petitioner's explanation of health issues and subsequent belated filing of returns. The petitioner argued that due to health issues, they could not file their GST monthly returns for three consecutive months. They subsequently filed the delayed returns until March 2021. They also contended that they were unable to file an appeal within the prescribed time due to these circumstances. The petitioner relied on the directions issued by this Court in the case of Tvl.Suguna Cutpiece vs. Appellate Deputy Commissioner (ST) (GST) and others, which has been consistently followed in subsequent cases. The respondents, represented by the Commissioner of GST & Central Excise and the Superintendent, did not present any specific arguments against the petitioner's plea in the judgment. The judgment notes that the Revenue Department has accepted the view taken in the cited precedents by not filing any appeals.