GST
TRT-2025-
Madras High Court
Date:-17-11-23
In:-
Issue Favourable to Tax Payer ?:-
Order Date – 17 November 2023
Parties: E.Dharmaraj Vs The Assistant Commissioner of State Tax
Facts –
- The Petitioner, E.Dharmaraj, is an illiterate and working as a owner-cum driver of lorry and obtained GST Registration in the month of May 2018 in the trade name of M/s.Selvi Transport.
- Since the petitioner's business is covered under Goods Transport Agency for which the liability for paying GST is on the service recipient under Reverse Charge Mechanism, the auditor engaged by the petitioner has been continuously filing NIL GSTR-1 and GSTR-3B returns instead of showing the actual outwards supplies.
- Therefore, on the presumption that the petitioner has not commenced any business, the respondent had cancelled the GST registration of the petitioner vide the impugned order dated 03.02.2023. However, without taking steps to restore the cancelled GSTIN, the auditor has filed GSTR-10 and accepted the cancellation.
Issue –
- Whether the GST cancellation can be restored once the cancellation is accepted?
Order –
- The Single Bench of Hon’ble High Court observed that it is a common knowledge that no prudent man would have raised invoices after accepting the cancellation by filing GSTR-10 returns. In the instant case on hand, the reason assigned by the petitioner appears to be genuine.
- Though the petitioner has given proper instructions to the auditor, the auditor has filed NIL GSTR-1 and GSTR-3B returns and has also filed GSTR-10 returns after knowing about the cancellation of GSTIN registration standing in the name of the petitioner.
- Therefore, for all these reasons, it appears that the petitioner had only made genuine transactions and the error had been committed only on the part of the auditor who had filed GSTR-10 returns after knowing about the cancellation of GSTIN registration of the petitioner.
- Hence the impugned order is set aside and the GSTIN registration standing in the name of M/s. Selvi Transport is directed to be restored.
Download Case Law
