Tvl. Sastha Engineeering Works Vs State Tax Officer (Madras High Court)
Summary: The Madras High Court has intervened to conditionally restore the Goods and Services Tax (GST) registration of Tvl. Sastha Engineering Works, a firm whose registration was cancelled due to its failure to file GSTR 3B returns for over six months. The court’s decision, delivered against an order dated November 30, 2020, by the State Tax Officer, follows a consistent judicial approach established in similar cases.
Tvl. Sastha Engineering Works, engaged in works contract services for the District Rural Development Agency, had its GST registration (GSTIN 33ANDFS0314F1ZT) cancelled by the tax authorities. The petitioner stated that while it had regularly filed monthly GST returns until February 2020, the onset of the pandemic led to non-receipt of payments from the District Rural Development Agency. This financial constraint, the petitioner argued, rendered it unable to remit taxes and consequently resulted in the failure to furnish returns for more than half a year.
Following the cancellation order, the company filed an appeal before the appellate authority on August 18, 2022, significantly beyond the statutory time limit prescribed under Section 107 of the GST Act.
Precedent from ‘Suguna Cutpiece’ Case
The Madras High Court, in considering this petition, drew upon its own established judicial precedent. The learned counsel for the petitioner highlighted the case of Tvl.Suguna Cutpiece Vs The Appellate Deputy Commissioner (ST) (GST) and others (W.P.Nos. 25048, 25877, 12738 of 2021 etc., batch), decided on January 31, 2022. In that landmark ruling, the Court had issued a detailed set of directions for the conditional revival of GST registrations under similar circumstances.
