Madras HC quashes GSTIN Registration Cancellation Order over Non-Filing of GSTR-3B for 6 Months [Read Order]

The Madras High Court has quashed the Goods and Services Tax Identification Number ( GSTIN ) registration cancellation order issued for non filing of GSTR 3B for 6 months which pointed out no tax dues pending.

The petitioner, a registered person under GST laws, received a show cause notice dated 02.02.2023, threatening cancellation of their GSTIN registration due to non-filing of returns. In response, the petitioner filed their returns, leading to the revocation of the suspension of registration on 02.03.2023. However, a fresh order of cancellation was issued on 06.04.2023, which prompted the appeal that was subsequently rejected.

The petitioner has challenged an order issued by the 2nd respondent, .Additional Commissioner (Appeals II), Office of the Commissioner of GST & Central Excise (Appeal II)  rejecting their appeal against an order dated 06.04.2023. The appeal was dismissed on the grounds of being filed belatedly.

The petitioner's counsel argued that returns were filed promptly upon receipt of the show cause notice, rendering the order of cancellation on 06.04.2023 unsustainable. Additionally, the counsel highlighted that the order reflects no tax dues against the petitioner and that the appeal was solely rejected based on limitations.

Sai Srujan Tayi, senior standing counsel, appearing on behalf of the respondents, acknowledges the notice of the petition. He pointed out that as per relevant dates, the appeal should have been filed on or before 05.08.2023, but it was filed on 01.09.2023.

The petitioner has provided evidence of filing pending tax returns on 02.03.2023, which resulted in the suspension of registration being revoked. The subsequent order of cancellation on 06.04.2023 was based on the petitioner's alleged failure to file GSTR-3B returns for a continuous period of six months. However, this order also confirms the absence of tax dues.

Considering the facts, the bench stated that it is evident that the petitioner has a strong case on merits. The impugned appellate order outlines relevant dates, indicating that the appeal, if filed within 30 days of the deadline, could have been condoned under Section 107 of the GST Act. Given the circumstances, the Court deemed it appropriate to direct the appellate authority to receive and dispose of the appeal on merits.

Therefore, the bench of Justice Senthilkumar Ramamoorthy of Madras High Court quashed the impugned order and remanded the matter to the appellate authority. They were instructed to review the appeal on merits within a maximum period of one month after providing a reasonable opportunity to the petitioner. The writ petition was disposed of accordingly, with no order as to costs.

To Read the full text of the Order CLICK HERE

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