Madras HC: Major Relief to Taxpayer on GSTIN Cancellation for Non-Filing of Returns

The Madras High Court relieved the taxpayer, Tvl Marimuthu Venkateshwaran on cancellation of GST registration because of the non-filing of tax returns as of problems related to health.

The writ petition furnished under Article 226 of the Constitution of India for issuance of a writ of Certiorarified Mandamus, asked for the records of the Assistant Commissioner (Circle) and suppressed that and therefore, directed the Respondents to revoke the cancellation of GST registration.

The cancellation order toward the registration certificate is challenged by the petition on the premise, the applicant losses to furnish the GST monthly returns. The Registration Certificate was withdrawn w.e.f. 02.02.2022 in view of Section 29 of the Central Goods and Services Tax Act, 2017.

The counsel for the applicant does not furnish the GST monthly returns because of health issues. Assistant Commissioner (Circle) provides the show cause notice asking for an explanation for the non-filing of the returns. Hence the applicant’s GST registration was cancelled. The applicant was unable to furnish the application for the revocation in the period, against the stated cancellation order.

The Counsel for the petitioner relied on the judgment in Tvl. Suguna Cutpiece v. The Appellate Deputy Commissioner (ST) (GST) along with the others provided some rules in the applicant’s favour who suffers similar conditions in which the taxpayer was permitted to furnish the returns for the time next to the registration cancellation via showing the right supply value and permit the GST payment.

A Single Bench, Justice Mohammed Shaffiq sees that “In view of the fact that this Court has been consistently following the directions issued in the case of Tvl.Suguna Cutpiece Vs Appellate Deputy Commissioner (ST) (GST) and others and the Revenue or Department has also accepted the said view as evident from the fact that no appeal has been filed in any of the matters, this Court intends to follow the above order of this Court.”