Alleged GST Registration Abused by Third Parties: Madras HC Orders Disposal of Application for GST Registration Cancellation [Read Order]

The Court directed the Joint Commissioner (CT) to consider and dispose of the petitioner's application for revocation of registration within two months.
Alleged GST Registration - Third Parties - Madras HC - Disposal of Application - taxscan

The Madras High Court ordered the disposal of applications for the Goods and Services Tax ( GST ) registration cancellation. It was alleged that the registration was abused by third parties.

The petitioner, who had been filing nil returns due to the drastic effects of the pandemic on their business, discovered the misuse of their GST registration when their consultant logged into the portal. Promptly, on 17.05.2023, the petitioner lodged a complaint with the Cyber Crime Cell regarding the unauthorised use of their registration.

However, amidst these challenges, the petitioner found themselves facing a show cause notice preceding an impugned order of cancellation, of which they claim to have been unaware. Subsequently, they applied for revocation, but the application remained unresolved till date, hindering their ability to resume business operations and claim refunds.

The counsel for the petitioner submitted that the petitioner’s complaint to the Cyber Crime Cell was prior to the impugned order of cancellation. It was submitted that the petitioner intended to resume business and that he is also entitled to a refund claim, which cannot be made unless the GST registration is restored.

Mr. V. Prashanth Kiran, Government Advocate representing the respondents, pointed out purported contradictions in the petitioner’s stance. While the petitioner alleged lack of access to the GST portal to respond to the show cause notice, their complaint to the Cyber Crime Cell indicated otherwise. Recognizing the need for resolution, the Government Advocate advocated for a directive to expedite the disposal of the revocation application.

A bench of Justice Senthilkumar Ramamoorthy disposed of the writ petition by directing the  Joint Commissioner (CT) to consider and dispose of the petitioner’s application for revocation of registration within two months. The directive includes providing a reasonable opportunity to the petitioner for presenting their case. No costs were imposed, and the connected miscellaneous petition was closed.

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