Order Date – 27 July 2022

Facts –

• The Petitioner, Tvl. Jeyalakhsmi Store, was served with a notice dated 04.01.2021, for cancellation of registration of GST.
• The petitioner asserts that due to the Covid-19 pandemic and nation-wide lock down, the petitioner's business was shut down and thus he did not file monthly returns.
• He further submits that his registration was cancelled in the month of May of 2022 when his private accountant accessed the GSTN. Subsequently, he filed the pending returns for the month up to August 2022 and since there were no business, he filed nil returns.
• The petitioner attempted to file a representation to revoke the cancellation of registration, the same was rejected on grounds that it was not filed within the statutory limitation of 90 (30+60) days.
• Aggrieved, the petitioner has filed this Writ Petition.

Issue –

• Whether the cancellation of GST registration due to non-filing of monthly returns owing to no business justifiable?

Order –

• The High Court observed that it will serve no useful purpose by keeping the Petitioner out of the Goods and Services tax regime. Majorly relying on Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others – Madrad High Court, which is quite similar to the case of the petitioner and the Court condoned the delay.
• The Court further observed that no useful purpose will be served by keeping the Petitioners out of the Goods and Services Tax regime, as such assessee would still continue to do business and supply goods/services. By not bringing them back to the Goods and Services Tax fold/regime, would not further the interest of the revenue.
• The Writ Petition was allowed subject to certain conditions and directed the Petitioner to file returns for the period prior to the cancellation of registration, with tax defaulted along with interest and fine and fee fixed for belated filing of returns for the defaulted within a period of 45 days from the date of receipt of a copy of this order.