GST Update

 Desk of CA. Praveen Sharma – 1026 Series (CAPS) 

GAUHATI HIGH COURT IN THE CASE OF Bina Taipodia Wife of Iluk Buchi 

The petitioner challenged the cancellation of GST registration on the ground that the registration was cancelled due to non-filing of returns, although the petitioner had subsequently filed the pending returns and deposited the required tax and penalty amounts.

The petitioner submitted that the show cause notice was never received and therefore no reply could be filed. It was further explained that due to health-related issues the petitioner could not comply with return filing requirements within time and there was no intention to evade tax or violate the provisions of law.

The Court observed that similar matters had already been decided earlier and the issue stood covered by previous judgments granting relief in comparable situations.

It was noted that cancellation of GST registration has serious civil consequences as it directly impacts the taxpayer’s ability to carry on business activities. The Court further observed that where a taxpayer furnishes pending returns and clears tax dues along with applicable interest, late fee and penalty, the authorities may consider restoration of registration in accordance with law.

Considering that the petitioner had already deposited the dues and filed returns, the Court directed the petitioner to submit a fresh application before the concerned authorities seeking restoration of GST registration within the prescribed time.

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

The writ petition was accordingly disposed of.

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Regards
CAPS