In a recent ruling, the Madras High Court has directed the GST Network (GSTN) to allow the payment of tax, penalty and fine by the taxpayer whose GST registration is cancelled due to non-filing of returns.
The petitioners, M/s GK Digital Printing approached the High Court challenging the order cancelling the GST registration by the department on the ground that the petitioner has failed to file returns continuously for a period of six months.
The petitioner has been issued with a Show Cause Notice dated 01.10.2019 for replying as to why the GST registration of the petitioner as the petitioner has failed to file returns for above six months. Since there was no response to the said Show Cause Notice, the petitioner’s GST Registration was cancelled vide impugned order dated 16.10.2019.
Justice C Saravanan has observed that the issue that arises for consideration in this Writ Petition was detailed considered by this Court in the case Tvl. Suguna Cutpiece Center Vs. The Appellate Deputy Commissioner (ST) (GST) and another, wherein, considering the revenue of the Government, certain reliefs were granted to the petitioners.
“There are adequate safeguards under the GST enactments which can also be pressed against these petitioners even if their registration are revived so that, there is no abuse by these petitioners and there is enough deterrence against default in either paying tax or in complying with the procedures of filing returns,” the Court said.
Concluding the order with a few directions, the Court said that the respondents shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow these petitioners to file their returns and to pay the tax/penalty/fine.
Mr. R. Senniappan appeared for the petitioners.
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