HC quashes cancellation of GST registration as assessee files GST returns with late fee

Case Details: Atlafbhai Rajabali Dosani v. Superintendent, Ghatak - [2023] 147 taxmann.com 23 (Gujarat)

Judiciary and Counsel Details

• • Ms Sonia Gokani & Mrs Mauna M. Bhatt, JJ.
  • Hiren J. Trivedi for the Petitioner.
  • Priyank P. Lodha for the Respondent.

Facts of the Case

The petitioner was a contractor engaged in providing construction services. The returns after September 2018 were not filed by the petitioner. A show cause notice was issued due to non-filing of returns and the registration was cancelled. It filed all pending returns and filed appeal against the cancellation but appeal was rejected. It filed writ petition against the cancellation and contended that the person engaged by the petitioner was under the impression that since outward supply was zero, there was no need for filing the return.

High Court Held

The Honorable High Court noted that the petitioner was under believe that he was not required to file the returns due to zero supply and secondly his consultant had not advised him correctly which led to non-filing of the returns. However, the petitioner filed all returns from September, 2018 till March, 2021 and also challan of late fee was deposited since it was expressing all kinds of readiness to continue business. After considering the extension of limitation by Supreme Court due to COVID-19, the Court held that the order of cancellation of registration was to be quashed.