Case Law Details
E. Dharmaraj Vs Assistant Commissioner of State Tax (Madras High Court)
In a recent ruling by the Madras High Court in the case of E. Dharmaraj Vs Assistant Commissioner of State Tax, the court addressed the issue of erroneous GST return filings leading to the cancellation of GST registration. The petitioner, Mr. E. Dharmaraj, challenged the cancellation of his GSTIN (Goods and Services Tax Identification Number) by the respondent, the Assistant Commissioner of State Tax, dated 03.02.2023.
Mr. Dharmaraj, an illiterate owner-cum-driver of a lorry, had obtained GST Registration No. 33AQRPD0201D1ZO in May 2018 under the trade name of M/s. Selvi Transport. He engaged the services of an auditor for filing GST returns, providing all necessary login credentials. However, the auditor, without proper instructions, continuously filed NIL GSTR-1 and GSTR-3B returns instead of reporting actual outwards supplies. Consequently, the respondent cancelled Mr. Dharmaraj’s GST registration, presuming non-commencement of business.
Despite actively conducting his transport business and invoicing over Rs. 25 lakhs between June 2023 and October 2023, Mr. Dharmaraj couldn’t recover payments due to the inactive GSTIN. Only upon discovering the cancellation order did he seek restoration of his GST registration through this writ petition.
In defense, the respondent argued that Mr. Dharmaraj accepted the cancellation by filing GSTR-10 returns, implying inconsistency in his actions.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
