M/S.Gmr Enterprises vs. The Commercial Tax Officer

Held

The Court allowed the writ petition. It held that the petitioner was entitled to the benefit of the extension, reasoning that although the cancellation date of 11.05.2023 was after the stipulated 31.12.2022 cut-off for Notification No.03/2023~Central Tax, the consideration for extension was pending during that period. The Court also found the issue to be covered by the judgment in Tvl. Suguna Cut Piece's case. The respondent was directed to restore the petitioner's GST registration. Following restoration, the petitioner was directed to file returns and pay tax and penalty as per law. No issue was expressly left undecided.

Facts

The petitioner, M/s.GMR Enterprises, voluntarily registered under GST. Due to financial difficulties, they failed to file returns. The respondent, the Commercial Tax Officer, Paramakudi, issued a show cause notice dated 26.04.2023, and subsequently cancelled the petitioner's GST registration on 11.05.2023. The petitioner states that the cancellation order lacked details and that they could not avail the benefit of Notification No.03/2023~Central Tax dated 31.03.2023, which extended the time for taxpayers whose cancellations were on or before 31.12.2022, as their cancellation was on 11.05.2023. The petitioner expressed willingness to pay GST along with late fees if the registration is revoked.

Key Issues

1. Whether the petitioner is entitled to have their GST registration revoked despite the cancellation date falling outside the period covered by Notification No.03/2023~Central Tax, given the circumstances of financial crisis and the pendency of consideration for extension during that period? 2. Whether the cancellation order dated 11.05.2023, issued by the respondent, is valid and sufficiently detailed? Petitioner's arguments: The petitioner contended that the cancellation order was bereft of details. They argued that although their cancellation date of 11.05.2023 was after the cut-off date of 31.12.2022 for Notification No.03/2023~Central Tax, the consideration for extension was pending during that period, entitling them to the benefit. They relied on the High Court of Madras judgment in Tvl.Suguna Cut piece Vs Appellate Deputy Commissioner (ST) (GST) for condoning delays in revoking cancelled GSTN registrations. The petitioner also stated their willingness to pay GST along with late fees upon revocation. Respondent's arguments: The respondent did not record any specific arguments against the petitioner's claims in the judgment.