GST Appellate Authority revokes cancellation of GSTIN as 10% of the Disputed Tax Amount was deposited [Read Order]

GST Appellate Authority - GSTIN - Disputed Tax Amount - Taxscan

The Himachal Pradesh Goods and Service Tax Appellate Authority revoked the cancellation of Goods and Service Tax Identification Number (GSTIN) as 10% of the Disputed Tax Amount was deposited.

The appellant, M/s Sahatya Security Services Private Limited has been engaged in providing security services to various institutes and corporate offices. The registration of the appellant was cancelled on account of a non-deposit of interest amount for more than three months. The appellant was issued notice to deposit the interest amount under CGST or HPGST Act, however, he failed to deposit interest within the stipulated period. The GSTIN of the appellant was, consequently, cancelled by the Proper Officer.

The appellant contended that despite filing appeals against the order issued by the proper officer, Respondent cancelled the registration of the appellant for failure to deposit the balance demand. The action of the proper officer is against the provision of the CGSTor HPGST enactments. Section 107(7) of CGST or HPGST Act, 2017 provides deemed stay of recovery proceedings for the balance amount in the event of the filing of the appeal, so, there remains no cause for cancellation of registration and the same may be revoked.

The Coram of Additional Commissioner State Tax and Excise, Hitesh Sharma clarified that Section 107(7) provides, “where the appellant had paid the amount under subsection 6 the recovery proceeding for the balance amount shall be deemed to stay.” In the present case, the appellant has deposited more than 10% of the disputed tax amount. Also, the interest amount is part of the order against which appeal has been filed by the appellant. Therefore, there is no contravention of the provision under section 29(2)(a)of CGST or HPGST Act 2017 for initiation of proceedings under the section.

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