Tvl.Grp Enterprises 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 Vs The Appellate Deputy Commissioner (ST) (GST) and others. The Court followed its consistent practice in similar matters, noting that the Revenue had not filed appeals against such orders. The operative directions from the Suguna Cutpiece case were applied, which included the petitioner filing all pending returns prior to cancellation, paying the defaulted tax along with interest, and paying a fine/fee for belated filing. Crucially, it was clarified that such payments could not be made from Input Tax Credit (ITC). Any unutilized ITC would require scrutiny and approval by a competent officer before it could be used for future tax liabilities. The petitioner was also directed to pay GST and file returns for the period subsequent to cancellation in cash. Upon compliance with these conditions, the registration was to be revived forthwith. The respondents were directed to take steps to enable the petitioner to file returns and make payments on the GST portal. The respondents were to complete this exercise within thirty days of receiving a copy of the order.

Facts

The petitioner, Tvl.GRP Enterprises, represented by its proprietor, filed a writ petition challenging an order dated 09.03.2022 passed by the Superintendent (Circle), Thiruparankundram Range, which cancelled its 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 petitioner contended that the cancellation was due to the proprietor's medical ailments, leading to an inability to file an appeal within the stipulated time. The business operations and statutory compliances were managed by staff and a private accountant.

Key Issues

1. Whether the cancellation of GST registration under Section 29 of the Central Goods and Services Tax Act, 2017, for non-filing of returns for six months, can be quashed and the registration revoked, considering the petitioner's plea of medical incapacitation and unawareness of the cancellation. Petitioner's Arguments: The petitioner argued that due to medical ailments, they were unaware of the cancellation and thus could not file an appeal within the prescribed time. They relied on a previous judgment by the same High Court in the case of Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others, which provided directions for revival of registration in similar circumstances. They also cited other consistent decisions of the Court that followed the Suguna Cutpiece judgment. Revenue's Arguments: The judgment does not record any specific arguments made by the respondents (Revenue).