Chendur Film International Vs Superintendent of GST & Central Excise (Madras High Court)
Madras High Court held that cancellation of GST registration due to non-payment of GST due to the financial crisis faced by the petitioner restored as the same will motivate the petitioner to do his business and pay pending tax.
Facts- Petitioner-company is engaged in production of films and duly registered for payment of the Goods and Services Tax. The petitioner had duly filed the GST returns and paid the GST promply till October 2022. Due to sudden financial crisis, even though the petitioner filed GSTR 1 return u/s. 37 of CGST Act 2017 for the month of October 2022, the petitioner could not file GSTR 3B return u/s. 39 of the Act and pay the tax. Consequently, the petitioner was unable to file the subsequent monthly returns under both Section 37 (GSTR-1) and Section 39 (GSTR-3B) of CGST Act 2017 due to the statutory bar under Rule 59(6)(a) of CGST Rules 2017. Subsequently, the petitioner on receipt of part amount due of Rs.5,68,61,111/-out of total due of Rs.10 crores from the custromer accordingly paid the GST due of Rs.1,02,35,000/- on 21.12.2023 and filed subsequent monthly returns, both GSTR 1 and GSTR 3B along with payment of late fee till April 2023 i.e., till the date of cancellation of the Registration on 20.07.2024. When things stood thus, the petitioner’s registration was cancelled. The petitioner made an application dated 28.09.2023, seeking for payment of dues in installments, so far, the third respondent has not passed any orders. Hence, the petitioner filed the present petition to quash the Cancellation Order in Form REG 19 and to direct the third respondent to issue Revocation Order.
