GST Update

???? Desk of CA. Praveen Sharma – 1023 Series (CAPS) ????

GAUHATI HIGH COURT IN THE CASE OF Taba Raju

The petitioner challenged the cancellation of GST Registration on the ground that the registration was cancelled due to non-filing of returns without granting proper opportunity and despite willingness to comply with the law.

The Court observed that cancellation of GST registration has serious civil consequences as it directly affects the ability of a person to continue business operations in a lawful manner. It was further noted that if the taxpayer furnishes all pending returns and deposits the applicable tax, interest, late fee and penalty, the authorities should consider restoration of registration in accordance with law.

The Court also emphasized that orders cancelling registration must be reasoned and speaking orders. Mere non-appearance or non-submission of reply by the taxpayer does not absolve the authority from recording reasons while passing an adverse order.

Considering that the petitioner had already filed pending returns and expressed readiness to clear all dues, the Court directed the petitioner to submit an application for restoration of registration before the concerned authorities within the prescribed period.

The authorities were further directed to verify the compliance and restore the GST registration in accordance with law after due consideration.

The writ petition was accordingly disposed of.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS