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April 20, 2022

Revocation of cancellation of GST registration (Cancelled due to non-filing of Returns)

by CA Shivam Jaiswal in GST

Revocation of cancellation of GST registration (Cancelled due to non-filing of Returns)

Facts and Issue of the case

This writ-application under Article 226 of the Constitution of India, the writ-applicants have prayed for the following reliefs:-

  • To issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ or order quashing and setting aside order dated 10.7.2019 (annexed at Annexure A) passed for cancelling the registration certificate of the Petitioner under the GST Acts;
  • To issue a writ of certiorari or writ in the nature of certiorari or any other appropriate writ or order quashing and setting aside order dated 14.9.2021 (annexed at Annexure F) passed by the appellate authority under the GST Acts;
  • To issue a writ of mandamus or writ in the nature of mandamus or any other appropriate writ or order directing the Respondents to forthwith restore the registration certificate of the Petitioners under the GST Acts;
  • Pending notice, admission and final hearing of this petition, be pleased to stay the operation, execution and implementation of impugned order dated 10.7.2019 (annexed at Annexure A) and the Respondents may please be directed to restore the registration certificate of the Petitioner;
  • Ex-parte ad interim relief in terms of prayer C may kindly be granted;
  • Such further relief(s) as deemed fit in the facts and circumstances of the case may kindly be granted in the interest of justice for which act of kindness your petitioners shall forever pray.

By the facts referred to above, the writ-applicants are here before this Court with the present writ-application.

Observation of the court

Court heard the learned counsel appearing for the parties and having gone through the materials on record, the only question that falls for our consideration is that whether the writ-applicants are entitled to seek any relief as prayed for.

Indisputably, the cancellation of registration was on the ground  of  non-filing  of  returns  by  the  writ-applicants.  The impugned order cancelling the registration came to be passed on 10.07.2019. The writ-applicants preferred an application before the appellate authority for revocation of cancellation of registration, but such application was not entertained on the ground that the same was time barred.

Court takes notice of the fact that the Central Board of Indirect Taxes and Customs extended the time limit for filing application for revocation of cancellation of registration and the limitation for all the orders passed on or before 12.06.2020 was to effectively commence from 31.08.2020. As the application filed by the writ- applicants for revocation of cancellation of registration was looked into by a quasi-judicial authority, the order of the Supreme Court extending the period of limitation in view of the Covid-19 Pandemic would apply and in such circumstances, the limitation in accordance with the order passed by the Central Board of Indirect Taxes and Customs could be said to have been extended.

Indisputably, the application requesting for restoration of registration was filed in July 2021 i.e. during the period when the order  of  the  Supreme  Court  extending  the  limitation  was  in operation.  More  importantly,  the  writ-applicants  have  paid  the requisite amount towards tax on the basis of self assessed liability on  06.09.2021.  Since  the  registration  of  certificate  of  the  writ- applicants came to be cancelled solely on the ground of non-filing of the returns, which was on account of non-payment of tax and the  writ-applicants  now  having  paid  such  outstanding  tax,  the registration certificate of the writ-applicants should be ordered to be restored so that they are able to continue with their business.

Conclusion

The  impugned  order  dated 10.07.2019 cancelling the registration certificate is hereby quashed and set aside. The respondents are directed to forthwith restore the registration certificate of the writ-applicants under the provisions of the G.S.T. Act.

The court disposed of writ-application.

Tahura-Enterprise-Vs-Union-of-India-Gujarat-High-Court

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