GST Registration Canceled due to Non-Compliance during Pandemic: Keeping Businesses Out of GST would affect Interests of Revenue, rules Madras HC [Read Order]

In a recent ruling, the Madras High Court, while considering a petition challenging the cancelation of GST registration due to non-compliance during the pandemic, held that keeping businesses out of tax regime would adversely affect the interests of revenue.

The petitioner, Tvl.Lucky Mydeen Briyani is engaged private accountant for the purpose of filing returns and he alone had the access to the GST portal for filing returns. During the Covid-19 Pandemic, the business shut down and further, the petitioner was suffering with ill-health. Hence, the petitioner was unable to conduct the accountant and file his returns. The department initiated proceedings to cancel the GST registration belongs to the petitioner.

Justice M.Nirmal Kumar observed that the petitioner during the Covid-19 pandemic period had not filed his returns and thereafter, he had not conducted any business so that he filed only nil returns.

“Further this case is quite similar to the cases of the petitioners in Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos.25048, 25877, 12738 of 2021 etc.. batch), dated 31.01.2022. There some of the petitioner had filed an appeal beyond the period of limitation either for filing application for revocation of cancellation, while some of them had directly filed a writ petition against the order cancelling the registration. While some of them filed appeal beyond the statutory period of limitation, there was further delay in filing the writ petition. However, considering the over all facts and circumstances of the case, it was held that no useful purpose will be served by keeping those petitioners out of the Goods and Services Tax regime, as such assessee would still continue to do business and supply goods/services. By not bringing them back to the Goods and Services Tax fold/regime, would not further the interest of the revenue,” the Court said.

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