Name: Mohana Blue Metal vs. Assistant Commissioner, Vanagaram
Assessment Circle
Court: High Court of Judicature at Madras:
Date: 14.12.2023
Case Details: W.P. No. 32728 of 2023 and WMP No. 32340 of
2023
Facts of the Case:
The petitioner, Mohana
Blue Metal, filed a writ petition challenging the cancellation of their GST
registration by the respondent. The GST registration was cancelled through an
order dated 05.01.2023 due to non-filing of monthly GST returns for the period
from July 2022 to December 2022. A show cause notice had been issued on
26.12.2022, but the petitioner did not respond, leading to the cancellation.
Submissions by the Petitioner:
The petitioner argued
that the non-filing of GST returns was due to the ill health of the Managing
Partner, Mr. R. Mohan Raj, who was responsible for filing the returns. The
petitioner's counsel, Mrs. V. Vijayalakshmi, contended that the cancellation
was neither wilful nor wanton but a result of a bona fide situation. She
emphasized that the cancellation order was passed without providing a
reasonable opportunity for the petitioner to be heard, thus violating the
principles of natural justice.
Cited Judgments:
The petitioner
referenced several cases where courts had restored cancelled GST registrations
under similar circumstances:
1. **Tvl. Suguna
Cutpiece Center vs. State of Tamil Nadu:** The court allowed the revival of GST
registration, emphasizing that petitioners deserve a chance to regularize
defaults.
2. **M/s. S.S. Traders
vs. State of UP:** The court held that the lack of specific date and time in
the show cause notice violated the principles of natural justice.
3. **Sri. Saravanan
Rathnavelu vs. The Superintendent (CGST):** The court noted that GST laws
should facilitate compliance and not debar taxpayers from the GST regime.
Submissions by the Respondent:
The respondent's
counsel, Mrs. E. Ranganayaki, acknowledged the petitioner's default in filing
returns. However, she did not object to the restoration of GST registration,
provided the petitioner pays all due taxes along with penalties and interest
within a timeframe set by the court.
Court's Observations and Judgment:
Justice Krishnan
Ramasamy considered the submissions and noted the petitioner's continued
business operations and the genuine reason for the non-filing of returns. He
found merit in the petitioner's arguments and the cited judgments supporting
restoration.
Order:
The court allowed the
writ petition, setting aside the impugned order. It directed the petitioner to
file a restoration petition, which the respondent must accept and restore the
GST registration within a week. Upon restoration, the petitioner must pay the
GST dues for the period from July 2022 to December 2022, along with interest
and penalties, within 45 days. No costs were awarded, and the connected
miscellaneous petition was closed.
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.
