M/S Taraka Rama Rao Gadde vs. The Commissioner Of Central GST And Central Excise

Facts

The petitioner, M/s Taraka Rama Rao Gadde, held a GST registration since 2017. This registration was cancelled by the respondent authorities. Subsequently, the Superintendent Central GST issued a recovery notice dated January 6, 2022, for Rs. 57,92,573/-, followed by another notice dated August 28, 2023. The petitioner filed GST returns for the period 2017-2021 in 2021, after the cancellation of registration, and paid Rs. 2,91,00,000/- in GST. After filing returns, the petitioner applied for revocation of the cancellation order. Instead of revoking, the authorities issued notices for interest on delayed payment. The petitioner then filed an application on December 27, 2023, seeking to pay the amount in installments, which remained undecided.

Held

The Court noted that the petitioner's application dated December 27, 2023, seeking to pay the interest amount in installments was pending consideration. The learned counsel for the respondents No. 1 to 3 undertook to decide this application within a period of 45 days from the date of the order. The Court disposed of the petition with a direction to the respondents No. 1 to 3, or the competent authority, to consider and decide the petitioner's application for payment of interest in installments within the stipulated 45 days. The Court also expressed an expectation that the petitioner would cooperate with the authorities to resolve the issue promptly. The issue of revoking the cancellation of GST registration was not explicitly decided, but the focus shifted to the decision on the installment payment application.

Key Issues

1. Whether the respondent authorities should revoke the cancellation of the petitioner's GST registration, considering the petitioner filed returns and paid GST after cancellation? (Question of law and fact, turning on provisions related to GST registration cancellation and revocation). 2. Whether the petitioner's application for payment of interest in installments should be decided by the respondent authorities? (Question of law and fact, turning on procedural fairness and the authority's power to consider such applications). Petitioner's contentions: The petitioner argued that they filed GST returns for 2017-2021 in 2021 and paid Rs. 2,91,00,000/-. They submitted an application for revocation of GST registration cancellation. However, instead of revocation, notices for interest on delayed payment were issued. An application for installment payment was filed but not decided. Respondents' contentions: The respondent authorities stated that the petitioner's application dated December 27, 2023, for installment payment is pending and they will decide it within 45 days.