Godwin Hospitality PVT LTD vs. Commissioner State Goods And Services Tax
Held
The Court held that the matter was covered by the order passed in Writ Petition No. 75 of 2023 (M/S). Consequently, the present writ petition was also decided in terms of that order. 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 was required to furnish all the GST returns that were not submitted and deposit the outstanding tax and dues. Upon receipt of the application within the stipulated time, the Competent Authority was directed to consider the petitioner's application and pass an appropriate order in accordance with the law within four weeks thereafter. The Court effectively allowed the petitioner to pursue revocation of the cancellation, subject to compliance with the conditions.
Facts
The petitioner is aggrieved by the cancellation of their GST registration, an order dated 04/10/2021. The cancellation was based on the allegation that the petitioner had not filed GST returns for a continuous period of six months. The petitioner sought to quash the cancellation order and sought a direction to permit them to file an application for revocation of the cancellation under Section 30 of the UKGST/CGST Act, 2017, and for the respondent to consider it. The petitioner stated they were ready to pay all balance tax, interest, and late fees. The petitioner's counsel submitted that the lapse in filing returns was due to unavoidable circumstances and that the petitioner was willing to submit the pending returns and deposit all dues. The petitioner also pointed to a coordinate bench's decision in a similar case, WPMS No. 75 of 2023, which was not disputed by the State.
Key Issues
1. Whether the cancellation of the petitioner's GST registration, based on non-filing of returns for six months, is valid, considering the petitioner's willingness to rectify the lapse and pay dues? (Question of law and fact, turning on Section 29(2) of the CGST Act, 2017 and principles of natural justice). Petitioner's Contention: The petitioner argued that the lapse in filing GST returns was due to unavoidable circumstances and that they are prepared to file all pending returns and deposit the outstanding tax, interest, and late fees. They relied on the principle that genuine efforts to comply should be considered and cited a coordinate bench's order in WPMS No. 75 of 2023 as precedent for similar cases. Revenue's Contention: The learned Brief Holder for the State did not dispute the petitioner's submissions or the applicability of the precedent cited by the petitioner.
Sections Cited
Section 29(2), Section 30
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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. 763 of 2023
Hon’ble Manoj Kumar Tiwari, J.
Mr. Ashish Agarwal and Mr. Tarun Pande, learned counsels for the petitioner.
Mr. Tarun Lakhera, learned Brief Holder for the State of Uttarakhand/respondets.
Petitioner is aggrieved by cancellation of his GST registration. The cancellation order is on record as Annexure No.
Before passing the cancellation order, a show-cause notice was issued to the petitioner, wherein, it was alleged that petitioner has not filed GST returns for a continuous period of six months. On this very ground, the petitioner’s GST registration has been cancelled.
The reliefs sought in the writ petition are as follows:- (i) Issue a suitable writ, order or direction, in the nature of certiorari calling the record of the case and quash the cancellation of GSTR registration order dated 04/10/2021 (Annexure No. 2 to W.P) as petitioner is ready to pay all the balance tax, interest on it and late fee if any. (ii) Issue a suitable writ, order o
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