M/S. 3Dot Energy Private Limited vs. The Commercial Tax Officer
Original PDF →Facts
The petitioner, M/s. 3DOT ENERGY PRIVATE LIMITED, filed a writ petition seeking to quash the cancellation of its GST registration (No. 33AAACZ9548B1ZB) by the respondent, the Commercial Tax Officer, dated 24.02.2023. The petitioner stated that its GST registration was cancelled due to non-filing of returns for the past six months. The petitioner attributed this non-filing to the ill health of its accountant, who was instructed to file NIL returns but failed to do so. The petitioner claimed to have filed returns until November 2021 and was willing to pay pending GST along with late fees if the registration was restored. The cancellation order was issued on 24.02.2023, after the period covered by a Supreme Court order excluding 15.03.2020 to 28.02.2022 for limitation purposes. The petitioner also noted that a subsequent Government notification (No.03/2023-Central Tax dated 31.03.2023) extended time for taxpayers whose cancellations were on or before 31.12.2022, a benefit it could not avail due to the cancellation date.
Held
The Court allowed the writ petition. The Court found that the cancellation order dated 08.10.2022 (referring to the show cause notice period) lacked specific reasons. While acknowledging that the petitioner's cancellation date of 24.02.2023 fell outside the scope of Notification No.03/2023-Central Tax (which applied to cancellations on or before 31.12.2022), the Court considered that the petitioner's case was pending consideration during the period of extension. The Court also relied on the judgment in Tvl. Suguna Cut piece’s case, which covered similar issues of condoning delays in revoking cancelled GSTN registrations. Therefore, the Court held that the petitioner was entitled to the benefit. The respondent was directed to restore the petitioner's GST registration. Upon restoration, the petitioner was directed to file returns and pay tax and penalty as per law. No costs were awarded.
Key Issues
1. Whether the cancellation of the petitioner's GST registration by the respondent on 24.02.2023, purportedly for non-filing of returns for six months, is arbitrary and illegal, considering the petitioner's explanation of ill health of its accountant and the subsequent amnesty schemes? Petitioner's arguments: The petitioner contended that the cancellation was arbitrary as it was due to the accountant's ill health and failure to file NIL returns. They argued that the period from 15.03.2020 to 28.02.2022 should be excluded for limitation purposes, as per Supreme Court orders. They also cited the Madras High Court's decision in Tvl. Suguna Cut piece Vs Appellate Deputy Commissioner (ST) (GST) where delay in revoking GSTN registration was condoned. Furthermore, they pointed out that Notification No.03/2023-Central Tax, which extended time for taxpayers, could not be availed as their cancellation date was after the stipulated period. The petitioner expressed willingness to pay all dues and late fees upon restoration. Revenue's arguments: The judgment does not record any specific arguments made by the respondent.
Sections Cited
Section 73
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
O R D E R This writ petition is filed for writ of Certiorarified Mandamus, to quash the cancellation order dated 24.02.2023 passed in Reference No. ZA330223127872T by the respondent and to direct the respondent to revoke the cancellation of GSTN Registration No. 33AAACZ9548B1ZB within such time as may be directed by this Court.
The petitioner is a Company in the business service and maintenance of wind mills voluntarily registered under GST with Registration No. 33AAACZ9548B1ZB. The petitioner has filed returns through an accountant, but due to ill health he could not follow the filing of returns for the past six months. The contention of the petitioner is that the said accountant was instructed to file NIL returns but he failed to file the returns for the past six months. The other end tax payers had informed the petitioner that his registration is cancelled, then only it came to the knowledge that the respondent issued show cause notice dated 08.10.2022 in the web portal and had cancelled 2/6 https://www.mhc.tn.gov.in/judis the GST registration stating that the petitioner had not filed GST returns for the past six months. The further contention of the petitioner is that the period from 15.03.2020 to 28.02.2022 is excluded for the purpose of calculating limitation in the Suo Motu petition by Hon’ble Supreme Court. In the batch of writ No.03/2023-Central Tax dated 31.03.2023 and has extended the time up to 30.06.2023, but the extension is granted to taxpayers granting time on or before 31.12.2022. But the petitioner’s cancellation is on 24.02.2023, hence the benefits of the said notification could not be availed by the petitioner. The petitioner has already filed GST monthly returns upto November 2021 and had paid necessary late fee and for the remaining period from December 2021, the petitioner could not upload the returns since the registration is cancelled. If the cancellation is set aside and the GST registration is revoked, then the petitioner is willing to pay the GST along with late fee.
The further contention of the petitioner is that the show cause notice, dated 08.10.2022, was issued to the petitioner in web portal, but the petitioner 3/6 https://www.mhc.tn.gov.in/judis is not proficient in computer access. After issuing the show cause notice, the respondent has cancelled the registration. Thereafter the respondent has cancelled the GST registration with effect from 01.12.2021. The contention of the petitioner is that the impugned order is bereft of any details. In the meanwhile, the respondent has issued amnesty scheme but the petitioner could not avail the benefit because of the cancellation of the registration of GST.
After hearing the rival submission this Court has given its anxious consideration. On perusal of the impugned order, dated 08.10.2022, it is seen that the respondent have not cited any reason. It is seen from the records that the Government has issued Notification No.03/2023-Central Tax dated 31.03.2023 and has extended the time up to 30.06.2023, but the extension is granted to taxpayers granting time on or before 31.12.2022. Unfortunately, the petitioner’s cancellation was on 24.02.2023, had it been prior to 31.12.2022 then the petitioner would have come within the time prescribed under the said notification. But the consideration for extension was pending during that period, hence this Court is of the considered that the petitioner is entitled to the benefit. Moreover, the issue is covered under the judgment of Tvl. Suguna Cut Piece’s case stated supra. 4/6 https://www.mhc.tn.gov.in/judis
Therefore, this Court is allowing the writ petition and the respondent is directed to restore the petitioner’s GST registration number. After restoration, the petitioner is directed to file the returns and pay tax and penalty as per law.
With the above said direction, the writ petition is allowed. There shall be no order as to costs. 13.09.2023
NCC : Yes/No Index : Yes / No Internet : Yes/ No Sml To The Commercial Tax Officer, Office of the Assistant Commissioner (ST) Melur Assessment Circle, Commercial Tax Buildings, Madurai. 5/6 https://www.mhc.tn.gov.in/judis S.SRIMATHY, J.
Sml
2023 6/6 https://www.mhc.tn.gov.in/judis
Reproduced from the public record of the Madras High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.