Court Orders Consideration for GST Restoration Amidst Delays Due to Anti-CAA Protests and Pandemic
In a significant judgment, the Gauhati High Court has directed the restoration of GST registration for M/s Apurba Enterprise, following its cancellation due to non-filing of tax returns for six consecutive months. The order was issued by Justice Anjan Moni Kalita, highlighting the civil consequences of such cancellations and providing a pathway for the petitioners to regain their registration by fulfilling statutory obligations.
M/s Apurba Enterprise, a sole proprietorship managed by a small-time contractor, faced the cancellation of its GST registration under Section 29(2)(c) of the CGST/AGST Act, 2017. This action was taken by the authorities after the petitioners failed to file returns for a continuous period of six months. The petitioners attributed this oversight to a loss of communication with their tax consultant and a bona fide belief that compliance was being maintained.
The court acknowledged the challenges faced by the petitioners, including disruptions caused by anti-CAA protests and the Covid-19 pandemic, which contributed to their delayed response in contesting the cancellation. Despite these delays, the court condoned the delay for this case, emphasizing that such leniency should not set a precedent for future cases.
Justice Kalita underscored the importance of procedural compliance, directing the petitioners to approach the competent authority with all pending returns, tax dues, applicable interest, and late fees. According to Rule 22(4) of the CGST Rules, 2017, if these requirements are met, the proceedings for cancellation can be dropped, allowing for the restoration of GST registration.
The court's decision draws parallels with a similar case, Mrs. Bobismrita Chetia Gogoi v. The Union of India, where the court had previously facilitated the restoration of GST registration under comparable circumstances.
The ruling mandates the respondent authorities to consider the application for restoration upon receipt of all necessary documents from the petitioners. The authorities are expected to act promptly, ensuring compliance with legal provisions and facilitating the reinstatement of the petitioners' GST registration within two months.
This judgment not only provides relief to M/s Apurba Enterprise but also sets a framework for businesses facing similar issues to seek redressal by fulfilling their statutory obligations.
Bottom Line:
GST registration cancellation - Cancellation of GST registration under Section 29(2)(c) of the CGST/AGST Act, 2017 for non-filing of returns for a continuous period of six months - Petitioners directed to approach the competent authority with all pending returns, tax dues, applicable interest, and late fees for restoration of GST registration under Rule 22(4) of the CGST Rules, 2017.
Statutory provision(s):
Section 29(2)(c) of the CGST/AGST Act, 2017, Rule 22(4) of the CGST Rules, 2017.
M/s Apurba Enterprise v. State of Assam, (Gauhati) : Law Finder Doc id # 2877926
