Kamala Catering Vs Assistant Commissioner (Circle) (Madras High Court)
The Madras High Court recently addressed a case involving the cancellation of GST registration due to non-filing of returns during the COVID-19 pandemic and the petitioner’s ill-health. The court’s decision to restore registration comes with specific conditions, highlighting the complexities faced by businesses during challenging times.
Detailed Analysis: The petitioner, citing the resurgence of COVID-19 and personal health issues, had failed to submit GST returns promptly. This led to the cancellation of their GST registration. In response, the petitioner approached the High Court seeking revocation, relying on legal precedent where similar reliefs were granted.
During the proceedings, the petitioner’s counsel emphasized the adverse impact of the pandemic on business operations, underscoring the inability to meet statutory deadlines. The court acknowledged these challenges, referencing the case of Suguna Cutpiece, where relief was granted under comparable circumstances.
The High Court’s order outlines specific directives for reinstating GST registration. These include mandating the filing of overdue returns within 45 days, payment of tax liabilities with interest, and restrictions on utilizing unclaimed Input Tax Credit (ITC) until scrutinized and approved by tax authorities.
Moreover, the court instructs the tax department to facilitate necessary changes to GST portals to enable compliance with the court’s directives promptly. This proactive approach aims to ease administrative burdens on affected businesses and ensure regulatory compliance under challenging conditions.
