In a recent matter involving the GST registration cancellation due to non-filing of GST returns due to ill health and Covid, the Madras High Court directed the department to restore the registration on conditions fixed in the case of Suguna Cutpiece.
The assessee-petitioner, Kamala Catering has challenged the cancellation of their GST registration seeking its revocation. The writ petition stated that the inability to file GST returns on time was due to ill-health and the COVID-19 pandemic.
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Mr.P.V.Sudakar, the assessee’s counsel asserted that the business was halted due to the resurgence of COVID-19 and promised to file the necessary returns if the registration is reinstated. The counsel referenced the case of Suguna Cutpiece v. The Appellate Deputy Commissioner (ST)(GST), suggesting that similar directions be issued.
The GST department’s counsel also agreed to issue directions according to the order of the Suguna Cutpiece.
In the conditions of the Suguna Cutpiece, the court directed the assessee to file the GST returns for the period prior to the cancellation if not filed along with the GST dues, interest and fee for belated filing within 45 days.
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The bench of Justice Senthilkumar Ramamoorthy has disposed of the writ petition with the following directions:
i. The petitioner is directed to file returns for the period prior to the cancellation of registration, if not filed, together with tax dues along with interest thereon and the fee fixed for belated filing of returns within a period of forty five (45) days from the date of receipt of a copy of this order.
ii. It is made clear that such payment of tax, interest, fine / fee and etc. shall not be allowed to be made or adjusted from and out of any Input Tax Credit (ITC) which may be lying unutilized or unclaimed in the hands of the petitioner.
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iii. If any ITC has remained unutilized, it shall not be utilised until it is scrutinised and approved by an appropriate or competent officer of the Department.
iv. Only such approved ITC shall be allowed to be utilised thereafter for discharging future tax liability under the Act and Rules.
v. The petitioner shall also pay GST and file the returns for the period subsequent to the cancellation of the registration by declaring the correct value of supplies.
vi. If any ITC was earned, it shall be allowed to be utilised only after scrutinising and approving by the respondent or any other competent authority.
vii. On payment of tax, penalty and uploading of returns, the registration shall stand revived forthwith.
viii. The respondent shall take suitable steps by instructing GST Network, New Delhi to make suitable changes in the architecture of the GST Web portal to allow the petitioner to file the returns and to pay the tax / penalty / fine.
ix. The above exercise shall be carried out by the respondent within a period of thirty (30) days from the date of receipt of a copy of this order.
The petition was disposed of accordingly.
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