Tvl.J R S And Co vs. The Commissioner Of Commercial Taxes

Held

The Court allowed the writ petition, directing the respondents to revoke the cancellation of the petitioner's GST registration and restore it. The Court followed its consistent view in similar cases, particularly the directions issued in Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others. The operative directions are that the petitioner must file all pending returns for the period prior to cancellation, along with the defaulted tax, interest, and any applicable fine or fee, within 45 days. This payment cannot be made from Input Tax Credit (ITC). Any unutilized ITC will be subject to scrutiny by a competent officer. The petitioner must also pay GST and file returns for the period subsequent to cancellation in cash. The registration shall stand revived upon payment of tax, penalty, and uploading of returns. The respondents are directed to take steps to enable the petitioner to file returns and pay dues, and this exercise should be completed within 30 days. The Court noted that the Revenue had accepted this view in previous matters by not filing appeals.

Facts

The petitioner, Tvl.JRS AND CO, represented by its Proprietor, filed a writ petition seeking to revoke the cancellation of its GST registration. The cancellation was ordered by the Assistant Commissioner, Tenkasi Assessment Circle, on 24.03.2022, effective from the same date. The reason for cancellation was the petitioner's failure to file GSTR 3B returns for a period of six months. The petitioner contended that this failure was due to ill-health and severe financial crisis, leading to no business transactions. The petitioner also stated that they were unable to file an appeal against the cancellation order.

Key Issues

1. Whether the cancellation of the petitioner's GST registration by the Assistant Commissioner, Tenkasi Assessment Circle, vide order dated 24.03.2022, is liable to be revoked and the registration restored, considering the petitioner's explanation for non-filing of returns. Petitioner's Contention: The petitioner argued that due to ill-health and financial crisis, they failed to file returns for six months, leading to the cancellation of their GST registration. They further submitted that they were unable to file an appeal against the cancellation order. The petitioner relied on a batch of writ petitions in Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc.), dated 31.01.2022, where similar directions were issued. Revenue's Contention: The judgment does not record any specific arguments made by the respondents (Revenue).