Sumathi.C vs. The Assistant Commissioner (St)

Held

The Court allowed the Writ Petition, extending the benefit previously granted in the case of Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others. The Court noted that it had consistently followed the directions issued in the Suguna Cutpiece case in various subsequent decisions and that the Revenue/Department had accepted this view by not filing appeals. Therefore, the Court ordered that the Petitioner be granted relief on the same terms as stipulated in paragraph 229 of the Suguna Cutpiece order. These terms include directions for the Petitioner to file pending returns, pay defaulted tax along with interest, fine, and fees, with specific conditions regarding the utilization of Input Tax Credit. The registration shall stand revived upon compliance. The respondents were also directed to take steps to enable the filing of returns and payment on the GST portal.

Facts

The Petitioner, C. Sumathi, filed a writ petition challenging the order dated 06.08.2022 passed by the Assistant Commissioner (ST), Madurai, cancelling her GST registration. The cancellation was based on the Petitioner's failure to file Goods and Services Tax monthly returns for a continuous period of six months, as per Section 29 of the Central Goods and Services Tax Act, 2017. The cancellation was made effective from 31.07.2022. The Petitioner's counsel submitted that the Petitioner was unable to file returns due to ill-health during the pandemic and consequently could not file an appeal within the stipulated time.

Key Issues

1. Whether the Petitioner's GST registration can be cancelled for failure to file returns for six continuous months, considering her ill-health during the pandemic and inability to file an appeal in time? Petitioner's argument: The Petitioner contended that due to ill-health during the pandemic, she was unable to file her GST returns and subsequently could not file an appeal within the prescribed time. She relied on the consistent view of this Court in identical circumstances, specifically citing the directions issued in Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc., batch), dated 31.01.2022. Respondent's argument: The judgment does not record any specific arguments made by the Respondent. However, the Respondent's action of cancelling the registration was based on the Petitioner's non-compliance with the filing requirements under the GST Act.