GSTIN cancelled due to non-filing of returns to be restored after fulfilling conditions: HC

Case Details: TVL. Natarajapathy Textiles v. Commissioner of Commercial Taxes - [2022] 140 taxmann.com 404 (Madras)

Judiciary and Counsel Details

• • C. Saravanan, J.
  • B. Rooban for the Petitioner.
  • V. Nirmal Kumar, Adv. for the Respondent.

Facts of the Case

The department issued notice to the petitioner to show cause as to why the Goods and Services Tax (GST) Registration of the petitioner should not be cancelled as the petitioner had failed to file returns continuously for a period of six months. It didn’t reply to the notice and the department cancelled the Goods and Services Tax (GST) Registration of the petitioner. Thereafter, the petitioner filed an application for revocation of the cancellation of a registration which was rejected as time barred. The petitioner approached this Court by way of this petition seeking for the above relief.

High Court Held

The Honorable High Court observed that where registration was cancelled for failure to file returns for six months, it should be restored upon fulfilment of conditions as it would not be in interest of Revenue to keep assessee outside GST regime. Since, no useful purpose to be served by keeping assessee out of GST regime, as such assessee would still continue to do business and supply of goods/services. Thus, the petition was admitted and the petitioner was also directed to file GST returns for the period prior to the cancellation of registration, if such returns have not been already filed.