New Ansari Traders Gstin vs. Commissioner State Goods And Services Tax

Held

The Court noted that the petitioner's submission regarding the identical issue being decided by a Coordinate Bench in WPMS No. 75 of 2023 and other similar writ petitions was not disputed by the State. Consequently, the Court decided to dispose of the present writ petition in terms of the order passed in Writ Petition No. 75 of 2023. The petitioner was granted liberty to move an application for revocation of the cancellation order under Section 30 of the Central GST Act within two weeks. Along with this application, the petitioner must furnish all pending GST returns and deposit the outstanding tax and dues. Upon receipt of a timely application, the Competent Authority is directed to consider the petitioner's application and pass an appropriate order in accordance with the law within four weeks thereafter. The writ petition was disposed of accordingly.

Facts

The petitioner, M/s New Ansari Traders, a proprietorship concern engaged in trading FMCG, bakery, and daily essential goods, had its GST registration cancelled by an order dated 20.10.2022. The cancellation was due to the petitioner's failure to furnish GST returns for six consecutive months. The petitioner sought to quash this cancellation order and sought a direction to permit them to file an application for revocation of cancellation under Section 30 of the CGST Act, 2017, and for the respondent to consider such application. The petitioner expressed readiness to pay all outstanding tax, interest, and late fees.

Key Issues

1. Whether the cancellation of GST registration for non-furnishing of returns for six consecutive months, without affording the petitioner an opportunity to rectify the default by filing pending returns and paying dues, is legally sustainable? Petitioner's contention: The petitioner argued that an identical issue has been decided by a Coordinate Bench of the High Court in WPMS No. 75 of 2023 and other similar writ petitions. They are ready to pay all outstanding tax, interest, and late fees and seek permission to file a revocation application under Section 30 of the CGST Act, 2017. Revenue's contention: The learned Brief Holder for the State did not dispute the petitioner's submission regarding the precedent set by the Coordinate Bench.