NMH Design Build Vs Commercial Tax Officer (Madras High Court)
The Madras High Court, in the case of NMH Design Build Vs Commercial Tax Officer, set aside the cancellation of a Goods and Services Tax (GST) registration despite the petitioner’s failure to file returns, respond to the show cause notice, or utilize statutory remedies like the Amnesty Scheme or an application for revocation under Section 30 of the Central Goods and Services Tax (CGST) Act, 2017.
The petitioner admitted that they had not conducted any business and consequently did not file returns, which led to the issuance of a show cause notice on January 25, 2025, and the subsequent cancellation of their GST registration. The Revenue argued that the petitioner failed to avail themselves of the Amnesty Scheme, which was in force until June 30, 2023, and also neglected to use the appeal provision under Section 107 of the CGST Act. The department also expressed uncertainty regarding whether the petitioner had conducted any undeclared transactions during the non-filing period.
The High Court considered the issue of GST registration cancellation in light of its previous ruling in Suguna Cut Piece Centre Vs. Appellate Deputy Commissioner. In that judicial precedent, the Court had established that keeping dealers or assessees outside the GST framework served no beneficial purpose, as they were likely to continue their business operations regardless. The Court reasoned that denying an opportunity to revoke the cancellation or file an appeal would be a “defeating move,” potentially causing the Revenue to lose tax revenue by excluding the dealer from the formal tax scheme.
