The Madras High Court allowed the assessee to file a GST return since the GST registration was cancelled on failure to file a GST return due to health issues.
Tvl.Sri Sastha Canteen, the petitioner failed to file a return for a continuous period of three months. The second respondent has cancelled the GST registration of the petitioner by order dated 13.04.2021 with effect from 18.03.2021.
It was submitted by the petitioner that due to health issues, the GST monthly returns were not filed continuously for a period of three months. Subsequently, the monthly returns until March 2021 were filed belatedly. Due to the above reasons, the petitioner was not able to file an appeal in time as stipulated under the Tamil Nadu Goods and Service Tax Act, 2017 against the cancellation of the registration.
In the case of Tvl.Suguna Cutpiece vs. Appellate Deputy Commissioner (ST) (GST), it was held that the petitioners are directed to file their returns for the period before the cancellation of registration, if such returns have not been already filed, together with tax defaulted which has not been paid before cancellation along with interest for such belated payment of tax and fine and fee fixed for belated filing of returns for the defaulted period under the provisions of the Act, within a period of forty-five (45) days from the date of receipt of a copy of this order, if it has not been already paid.
In the case, the Court made it clear that such payment of Tax, Interest, fine / fee etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit which may be lying unutilized or unclaimed in the hands of these petitioners.
It was held that if any Input Tax Credit has remained utilized, it shall not be utilised until it is scrutinized and approved by an appropriate or competent officer of the Department. Only such approved Input Tax Credit shall be allowed for being utilized thereafter for discharging future tax liability under the Act and Rule.
The petitioners shall also pay GST and file the returns for the period after the cancellation of the registration by declaring the correct value of supplies and payment of GST shall also be in cash. If any Input Tax Credit was earned, it shall be allowed to be utilised only after scrutinising and approval by the respondents or any other competent authority.
A Single judge bench comprising Justice P T Asha held “that the benefit extended by the Court in the earlier orders in Suguna Cutpiece Centre’s case may be extended to the Petitioner.”
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