Case Law Details
Sarvagya Infrastructure Pvt Ltd Vs Assistant Commissioner (ST) (Madras High Court)
Madras HC Quashes GST Registration Cancellation Order as continuous period of six months of non-filing of GST Return had not lapsed when the show cause notice was issued.
The Madras High Court recently rendered a significant judgment in the case of Sarvagya Infrastructure Pvt Ltd Vs Assistant Commissioner (ST), wherein it addressed the cancellation of GST registration. The petitioner, engaged in sub-contracts in the construction and real estate sector, faced cancellation due to alleged non-filing of GSTR 3B returns.
The petitioner contended that they regularly filed returns until March 31, 2022, and ceased operations thereafter. Upon receiving a show cause notice in August 2022, they promptly filed returns for the subsequent months. The crux of the petitioner’s argument rested on Section 29 of the GST enactments, which mandates cancellation only after six months of non-filing. Given the timely filing up to March 2022 and subsequent compliance, the petitioner asserted the cancellation order was unwarranted.
Contrarily, the respondent argued that the petitioner failed to file returns for April to July 2022-2023, and the cancellation order was justified. However, the court observed that the six-month period, calculated from April, did not lapse when the show cause notice was issued. Moreover, the petitioner rectified the alleged non-compliance by filing returns upon receiving the notice, thereby mitigating the breach.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
