GST Cancellation Can Be Reconsidered If Taxpayer Files Pending Returns And Pays Dues: Gauhati HC [Read Order]

The Gauhati High Court heard a matter cancellation of the petitioner’s GST registration could be reconsidered if the petitioner files pending returns and pays the dues.

The petitioner no. 1, M/s Apurba Enterprise, challenged the cancellation of GST registration passed under Section 29 of the CGST/AGST Act, 2017. Petitioner No. 2, the sole proprietor, is a contractor who undertakes minor contractual and supply works under various departments of the Government of Assam and is representing Petitioner No. 1.

The facts, as per the submissions of the petitioner, are that they had obtained GST registration in 2019 and GSTliabilities were duly discharged and returns were filed for the initial period. However, petitioner no. 2 lost contact with the Tax Consultant and was under bona fide belief that necessary statutory compliances were being attended to.

On 07.11.2019, a show cause notice was issued proposing the cancellation of GST registration of the petitioners on the allegation of non-filing of returns for a continuous period of six months. The Tax Consultant submitted a reply on 15.11.2019 but concerned authorities proceeded to pass an order dated 07.12.2019 cancelling the GST registration.

The petitioner pleaded on the ground of unavoidable circumstances including anti-CAA protests in Assam and Covid-19 pandemic. Additionally, it was submitted that there were certain miscommunications with the Tax Consultant with regards to the effects of show-cause notice. Finally, it has been contended that the petitioners are ready to pay all liabilities pending against them, if the delay is excused.

The High Court took into observation Rule 22 of the CGST Rules, 2017 and noted the resolution of the issue as mentioned in sub-rule (4). The respondent authorities were, therefore, asked to reconsider their position if the petitioner complies with the payment of pending liabilities inclusive of tax, penalty, interest and late fee.

Justice Anjan Moni Kalita disposed of the petition condoning the delay but noting its non-applicability as precedent.

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