In a recent ruling, the Madras High Court instructed the Goods and Services Tax ( GST ) department to initiate steps to revoke the cancellation of GST registration, conditional upon certain requirements.
The court found that the cancellation was a result of non-filing of returns for 6 months due to the petitioner’s inability to return from Sri Lanka following the death of her father-in-law.
Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here
This writ petition challenges the order dated November 16, 2023, passed by the respondent, which cancelled the petitioner’s GST registration.
The petitioner’s counsel submitted that following the death of her father-in-law, the petitioner was compelled to travel to Sri Lanka to perform last rites, resulting in the failure to file GST returns for six months.
Consequently, the respondent cancelled the petitioner’s GST registration on November 16, 2023. The counsel further stated that the petitioner is prepared to file the outstanding GST returns and settle any tax liabilities along with applicable interest and penalties. Thus, requested the Court to revoke the cancellation order.
Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here
In response, the Government Advocate confirmed the cancellation of the petitioner’s GST registration and sought an appropriate order from the Court. After hearing both parties and reviewing the available materials, the Court noted that the petitioner’s inability to file returns was due to genuine circumstances surrounding her father-in-law’s demise, which affected her business operations.
Consequently, the Court decided to revoke the cancellation order, imposing specific conditions for compliance. Firstly, the respondent was instructed to coordinate with the GST Network, New Delhi, to amend the GST portal to facilitate the petitioner’s filing of returns and payment of any taxes or penalties within four weeks.
Secondly, the petitioner must file all overdue returns along with associated tax dues and interest within four weeks from the restoration of her GST registration.
Be a GST Expert: Get Essential Questions, Key Judgements and Practical Guide, Click Here
Additionally, it was clarified that any payment of tax, interest, or fines cannot be made from unutilized Input Tax Credit ( ITC ). Any unutilized ITC must undergo scrutiny and approval by a competent officer before being used for future tax liabilities. The use of ITC earned will also be contingent upon appropriate approval from the respondent or a relevant authority.
The Court ordered that failure to comply with any of these conditions would lead to the immediate cessation of benefits granted under this order. Accordingly, the writ petition was disposed of.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
