Maharaja Stone Crusher vs. The Commissioner CGST
Held
The Court disposed of the writ petition by granting the petitioner liberty to move an application for revocation of the cancellation order under Section 30 of the CGST Act, 2017, read with Rule 23 of the CGST Rules, 2017. The petitioner was directed to file this application within two weeks from the date of the order. The Court stipulated that the petitioner must comply with all conditions stipulated in Section 30 of the CGST Act, including filing all pending returns and depositing all outstanding dues. If the application is filed within the stipulated period, the Competent Authority is directed to consider the petitioner's application for revocation within the subsequent two weeks. The Court's decision was based on the similarity of the issue to a previously decided case, WPMS No. 3187 of 2022.
Facts
The petitioner, a proprietorship firm registered under the Central GST Act, 2017, had its GST registration cancelled by an order dated 23.03.2022. The cancellation was based on the ground of non-filing of GST returns for six consecutive months. The petitioner attributed this lapse to a communication gap with her tax consultant. The petitioner filed a writ petition before the High Court challenging the cancellation order. The petitioner relied on a previous judgment of the same High Court in WPMS No. 3187 of 2022, contending that the present case involved an identical issue.
Key Issues
1. Whether the cancellation of GST registration for non-filing of returns for six consecutive months, due to a communication gap with the tax consultant, warrants revocation under Section 30 of the CGST Act, 2017, read with Rule 23 of the CGST Rules, 2017? Petitioner's contention: The petitioner argued that since the issue is identical to the one decided in WPMS No. 3187 of 2022, the present writ petition should be decided in terms of that judgment. The petitioner's explanation for non-filing returns was due to a communication gap with the tax consultant. Revenue's contention: The respondents, represented by their counsel, submitted that the controversy involved in the petition is similar to the aforementioned judgment, and therefore, the instant writ petition can be decided in terms of the judgment rendered in WPMS No. 3187 of 2022.
Sections Cited
Section 30, Rule 23
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Sl. No Date Office Notes, reports, orders or proceedings or directions and Registrar’s order with Signatures COURT’S OR JUDGES’S ORDERS
WPMS No. 2186 of 2024
Hon’ble Manoj Kumar Tiwari, J.
Mr. Nikhil Singhal, learned counsel for the petitioner.
Ms. Shakshi Singh, Advocate holding brief of Mr. Shobhit Saharia, learned counsel for the respondents.
Petitioner runs a business as proprietorship firm, which was registered under the provisions of Central GST Act, 2017. Her registration has been cancelled vide order dated 23.03.2022. The ground taken for cancelling her registration is non- filing of GST returns for six consecutive months. The explanation offered by petitioner is that due to communication gap between her and tax consultant, GST returns could not be filed in time.
Learned counsel for petitioner has relied upon judgment dated 12.12.2022 rendered by this Court in WPMS No. 3187 of 2022. He submits that since identical issue has been decided in the aforesaid writ petition, therefore, the present writ petition can be decided in terms of the said judgment.
Ms. Shakshi Singh, learned counsel for the responden
The judgment continues below.
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