Case Law Details
Hilton Garden Inn Vs Commissioner of Kerala Goods And Service Tax Department (Kerala High Court)
Introduction: In a recent judgment, the Kerala High Court has ruled in favor of a petitioner, Hilton Garden Inn, against the Commissioner of Kerala Goods and Service Tax Department. The dispute revolved around the imposition of interest under Section 50(1) of the CGST/SGST Act, 2017, for delayed remission of taxes. The court’s decision sheds light on the challenges faced by businesses when dealing with GSTN cancellations and emphasizes the need for a fair and just application of tax regulations.
Background: The petitioner, Hilton Garden Inn, was initially registered under the Kerala Value Added Tax Act, 2003, and the Kerala Tax on Luxuries Act. Subsequently, they transitioned to the CGST Act in July 2017. The petitioner held multiple vertical businesses, each with a separate GSTIN registration. However, due to a technical glitch in the GST network, their GSTIN was canceled on 24.08.2017, without proper notice.
Legal Proceedings: The petitioner promptly notified the authorities about the cancellation, seeking assistance to resolve the issue. Despite filing applications to reactivate the GSTIN, the petitioner only received a response on 15.11.2017, following an interim order by the Kerala High Court on 21.12.2017. This order directed the authorities to restore the registration within a week.
The petitioner faced challenges in filing returns and remitting taxes due to the unavailability of the GSTIN. It was only after the restoration on 26.12.2017 that the petitioner could resume their compliance activities. The court acknowledged the petitioner’s efforts in promptly addressing the cancellation and pursuing legal avenues for resolution.
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