Renu Khulbe vs. Commissioner State Goods And Services Tax Commissionerate Dehradun
Held
The Court held that the matter was covered by previous orders of a Coordinate Bench of the High Court dealing with identical controversies. The Court directed the petitioner to move an application for revocation of the cancellation order under Section 30 of the Central GST Act within two weeks from the date of the order. Along with this application, the petitioner was required to furnish all the GST returns that were not submitted and deposit the outstanding dues of Goods and Service Tax. The Court further directed that if the application was made within the stipulated time, the competent authority shall consider the petitioner's application and pass an appropriate order in accordance with the law within four weeks thereafter. The Court did not expressly leave any issue undecided.
Facts
The petitioner, registered under the CGST Act, had their GST registration cancelled by an order dated 15.11.2022. The sole reason for cancellation was the non-submission of GST returns for six consecutive months. The petitioner attributed this lapse to their GST consultant. The petitioner sought to quash the cancellation order and sought a direction to permit them to file an application for revocation of cancellation under Section 30 of the CGST Act, offering to pay all outstanding tax, interest, and late fees. The petitioner also stated they were ready to file the pending returns. The State did not dispute the petitioner's submission that a Coordinate Bench had decided identical controversies in other writ petitions.
Key Issues
1. Whether the cancellation of GST registration for non-submission of returns for six consecutive months, when the petitioner is willing to deposit all outstanding dues and file pending returns, is a valid ground for cancellation, particularly in light of the provisions of Section 29(2) of the CGST Act, 2017, read with Rule 21 of the CGST Rules, 2017? Petitioner's contention: The petitioner argued that the cancellation was based on a technical lapse due to their consultant and that they are now prepared to rectify the situation by filing all pending returns and paying all dues, including tax, interest, and late fees. They relied on the principle that such lapses should be condoned if the tax liability is discharged. They also pointed to previous orders of the Court dealing with similar matters. Revenue's contention: The revenue did not dispute the petitioner's submissions regarding the existence of similar orders passed by a Coordinate Bench of the Court.
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 684/2023 Hon’ble Manoj Kumar Tiwari, J. Mr. Ashish Agarwal, Advocate, for the petitioner. Petitioner was registered under the Central Goods and Services Act, 2017 (CGST Act). His registration has been cancelled by order dated 15.11.2022. The sole ground for cancelling petitioner’s GST registration is non-submission of GST returns for six consecutive months. 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 15.11.2022 (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 or direction in the nature of mandamus permitting the petitioner to prefer an application U/S 30 of the UKGST/CGST Act, 2017, for filing an application for revocation of the cancellation of the GSTIN05AKWPK8628G2ZL of the petitioner and further direct the responde
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