Nagson and Co. Vs The Joint Commissioner of Central Tax (Karnataka High Court)
Karnataka High Court directed restoration of GST registration as non-payment of GST and non-filing of GST return, on account of bonafide reasons, unavoidable circumstances and sufficient cause du;u accepted
Facts-
Petitioner has filed the present writ against the impugned order confirming cancellation of GST registration. Petitioner contended that due to financial constraints and also due to covid-19 pandemic, petitioner could not make GST payments on time leading to the show cause notice dated 13.12.2019 being issued to the petitioner and the subsequent order dated 28.12.2020 being passed by the 2nd respondent cancelling the GST registration of the petitioner.
Conclusion-
In the instant case, it is the specific assertion of the petitioner that due to financial constraints and covid-19 pandemic and on account of bonafide reasons, unavoidable circumstances and sufficient cause, it was not possible for him to not only file the GST returns and make payment within the stipulated time, but also could not prefer the appeal within the prescribed period. In my considered opinion, the explanation offered by the petitioner in not making GST payment and delay in filing returns and preferring an appeal deserves to be accepted and by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned orders and direct the 2nd respondent to restore the GST registration of the petitioner, subject to payment of all dues by the petitioner.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
