No Late Fees during GSTIN Revocation and Restoration Period: HC

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  • Last Updated on 18 May, 2023

GST Late Fees

Case Details: Ishwar Chand Proprietor of Bhagwati Trading Co. v. Union of India - [2023] 150 294 (Delhi)

Judiciary and Counsel Details

    • Vibhu Bakhru & Amit Mahajan, JJ.
    • Malay SwapnilMs Bhumika Aggarwal, Advs. for the Petitioner.
    • Krishna Kumar Sharma, Sr. Panel Counsel Vijay Joshi, Sr. SC Anil Devlal, Govt. Pleader & Gurjas Singh Narula, Advs. for the Respondent.

Facts of the Case

The petitioner had not filed its GST returns for a period of more than six months. The department issued Show Cause Notice and the petitioner didn’t respond to the notice but it filed GST returns. However, the department issued an order dated 29.07.2020 and GST registration of petitioner was cancelled by the department.

It filed application for revocation of cancellation of registration on 16.10.2020 but the same was rejected. Thereafter, it filed appeal against the order and the appellate authority had directed that the petitioner’s GSTIN registration would be restored. The registration was restored on 22.04.2022 and it filed petition against the levy of penalty for the late filing of the returns.

High Court Held

The Honorable High Court observed that the revocation of cancellation application was ultimately allowed by Appellate Authority but registration was not restored immediately. The Court also noted that the petitioner could not be held responsible from date of filing application for revocation of its cancellation for not filing its returns during period when registration stood cancelled.

Thus, the Court held that the period 16-10-2020 to 22-4-2022 when petitioner’s registration was restored would be excluded for purpose of calculating any penalty for late filing of returns.

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