Case Law Details
Radhe Packaging Vs Union of India (Gujarat High Court)
In the case of Radhe Packaging vs. Union of India, heard by the Gujarat High Court, the court directed the assessee to approach the Revenue Department to avail the benefit of a special procedure for the revocation of their cancelled Goods and Services Tax (GST) registration.
Facts:
This petition has been filed by M/s. Radhe Packaging (“the Petitioner”) against the Show Cause Notice dated August 10, 2022 (“the SCN”) and the consequential Order dated September 10, 2022 (“the Impugned Order”), whereby the GST registration of the Petitioner was cancelled on the grounds that, the Petitioner had failed to furnish GST returns for a continuous period of 6 months.
Notification No. 3 provided that, the registered person, whose registration has been cancelled under clause (b) or clause (c) of Section 29(2) of the CGST Act, on or before December 31, 2022 and who has failed to apply for revocation of cancellation of such registration within the time period specified in Section 30 of the CGST Act, may apply for revocation of cancellation of such registration upto June 30, 2023.
Issue:
Whether the Petitioner can apply for revocation of cancellation of GST registration in view of Notification No. 3?
Held:
The Hon’ble Gujarat High Court in R/Special Civil Appeal No. 5673 of 2023 held as under:
- Noted that, as per Notification No. 3, it provides for special procedure in order to apply for revocation of cancellation of GST registration.
- Observed that, Notification No. 3 would apply to the facts of the case for which there is no dispute.
- Directed the Petitioner to approach the Revenue Department to avail the benefit of the Notification No. 3 and seek revocation of the cancellation of its GST registration.
- Further directed the Revenue Department to take appropriate decision without any delay w.r.t. application for revocation of cancellation of GST registration of the Petitioner.
Relevant provision:
Section 30(1) of the CGST Act:
Till the date yet to be notified:
“Revocation of cancellation of registration.
30. (1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in the prescribed manner within thirty days from the date of service of the cancellation order.
Provided that such period may, on sufficient cause being shown, and for reasons to be recorded in writing, be extended,-
(a) by the Additional Commissioner or the Joint Commissioner, as the case may be, for a period not exceeding thirty days;
(b) by the Commissioner, for a further period not exceeding thirty days, beyond the period specified in clause (a)”
W.e.f. the date yet to be notified:
“Revocation of cancellation of registration.
30. (1) Subject to such conditions as may be prescribed, any registered person, whose registration is cancelled by the proper officer on his own motion, may apply to such officer for revocation of cancellation of the registration in such manner, within such time and subject to such conditions and restrictions, as may be prescribed.”
FULL TEXT OF THE JUDGMENT/ORDER OF GUJARAT HIGH COURT
Heard learned advocate Mr. Kuntal Parikh for the petitioner and learned Assistant Government Pleader Mr. Raj Tanna upon service of copy of the petition in advance.
2. What is prayed in this petition is to set aside the order dated 10.09.2022 whereby the registration of the petitioner under the Gujarat Goods and Services Tax Act, 2017, came to be cancelled. It is also prayed to set aside the show cause notice dated 10.08.2022, which preceded the order of cancellation. The third prayer is to direct the respondent authorities to restore the registration of the petitioner.
3. The show-cause notice whereby the GST registration of the petitioner was proposed to be cancelled mentioned more than one ground that the returns furnished by the petitioner under Section 39 of the Central Goods and Services Tax Act, 2017 were with incomplete details and that there was failure to furnish returns for a continuous period of six months.
3.1 Reply dated 10.09.2022 came to be filed by the petitioner pursuant to the show-cause notice, which was however not accepted and the order of cancellation of registration dated 10.09.2022 was passed.
3.2 When the text of the order dated 10.09.2022(Annexure-A) is noticed, the ground of Section 39 of the Act appears to have been dropped. The cancellation is ordered on the ground that the tax payer has not filed GST returns for more than six months and that the tax payer has not responded by filing such returns.
4. In course of the hearing, learned advocate for the petitioner invited attention of this Court to the details figuring in the tabular form (page 41 of the compilation of the petition) which shows, according to the petitioner, that the returns were filed prior to the cancellation. It was submitted that after cancellation, in view of the cancellation, returns could not be filed. It was submitted that however, after cancellation of the registration, in absence of registration number, the returns could not be filed.
5. In response to the grievance of the petitioner regarding cancellation of the registration on the ground of non-filing of the returns of income, learned Assistant Government Pleader produced copy of the Notification dated 31.03.2023 issued under Section 148 of the Central Goods and Service Tax Act, 2017.
5.1 The notification reads as under,
NOTIFICATION
New Delhi, the 31st March, 2023
No. 03/2023-CENTRAL TAX
G.S.R. 246(E)-In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies that the registered person, whose registration has been cancelled under clause (b) or clause (c) of sub-section (2) of section 29 of the said Act on or before the 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the said Act as the class of registered persons who shall follow the following special procedure in respect of revocation of cancellation of such registration, namely:-
(a) the registered person may apply for revocation of cancellation of such registration upto the 30th day of June, 2023;
(b) the application for revocation shall be filed only after furnishing the returns due upto the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of the such returns,
(c) no further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases.
Explanation: For the purposes of this notification, the person who has failed to apply for revocation of cancellation of registration within the time period specified in section 30 of the said Act includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under Sub-section (1) of section 30 of the said Act.
[F. No. CBIC-20013/1/2023-GST]
ALOK KUMAR, Director
5.2 Clause (c) of the aforesaid Notification would apply to the facts of this case for which there is no dispute.
6. As the Notification would indisputably apply to the facts of this case, the petitioner may approach the competent authority to avail the benefit of the Notification and seek revocation of the cancellation of registration.
6.1 If the petitioner approaches the competent authority in light of the Notification dated 31.03.2023, the authority will take appropriate decision without booking any delay.
7. Without expressing anything otherwise on the merits of the case, the petition is accordingly disposed of.
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