Case Name: M/s. Sastha Traders vs. The
Superintendent GST and Central Excise
Court: High Court of Judicature at Madras
Judge: Mr. Justice Krishnan Ramasamy
Writ Petition No.: 35770 of 2023
Miscellaneous Petition
No.: 35750 of 2023
Date of Judgement: 21 December 2023
Facts of the Case
M/s. Sastha Traders,
represented by its partner M. Karuppasamy, filed a writ petition challenging
the cancellation of their GST registration by the Superintendent of GST and
Central Excise, Coimbatore. The GST registration was cancelled on 13 October
2023 due to the petitioner’s failure to file GST returns as required under
Section 39(1) of the Goods and Services Tax Act, 2017. Despite submitting a
reply to the show cause notice issued by the respondent, the petitioner's response
was allegedly not considered, and no opportunity for a personal hearing was
provided before the cancellation.
Petitioner's
Submission
The petitioner
contended that the cancellation of their GST registration was unjust as their
reply to the show cause notice was not taken into account by the respondent.
They argued that the respondent failed to provide a personal hearing before
issuing the cancellation order, violating principles of natural justice.
Furthermore, the petitioner expressed their willingness to file all pending GST
returns and comply with their tax obligations if the registration was restored.
Respondent's
Submission
The respondent,
represented by Senior Standing Counsel Mr. K. Mohanamurali, argued that the
cancellation was due to the petitioner’s failure to file the requisite GST
returns. The respondent maintained that if the petitioner filed their pending
returns and paid the due taxes, interest, and penalties within a stipulated
period, the cancellation could be reconsidered and appropriate orders would be
issued in accordance with the law.
Judgement
Upon hearing both
parties and examining the materials on record, the court found that the
petitioner had not carried on any business during the relevant period and thus
had not filed the necessary GST returns. However, the petitioner was now ready
to comply with the requirements.
The court issued the
following orders:
1.
The impugned
cancellation order dated 13 October 2023 was set aside.
2.
The respondent was
directed to reopen the GST portal within one week from the date of receipt of
the court's order, allowing the petitioner to file their returns.
3.
The petitioner was
instructed to file all pending GST returns and pay the tax liabilities,
interest, and penalties within 30 days from the reopening of the portal.
4.
The court clarified
that if the petitioner failed to comply with these directions, the cancellation
order dated 13 October 2023 would be automatically restored.
The writ petition was
disposed of with these directions, and the connected miscellaneous petition was
also closed. No costs were imposed.
Disclaimer: All the Information is based on the notification, circular and order issued by the Govt. authority and judgement delivered by the court or the authority information is strictly for educational purposes and on the basis of our best understanding of laws & not binding on anyone.
