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Madras High Court restore
the GST registration considering the petitioner's financial situation
By Yogesh
Verma (CS/LLB) / 2 min. read / GST Case
Law
Case Title; M/s. Chendur Film International vs The
Superintendent of GST & Central Excise & Others
Case Number: W.P.
No. 22738 of 2024
Date of
Order: 06.08.2024
Name of the
Court: High Court of Judicature at Madras
Presiding
Judge: The Hon'ble Mr. Justice Krishnan Ramasamy
Summary of the Case:
The petitioner, M/s.
Chendur Film International, sought the court's intervention to quash the
cancellation of its GST registration and to direct the authorities to revoke
the cancellation. The court, considering the financial distress of the
petitioner, set aside the cancellation order and directed the restoration of
the GST registration, enabling the petitioner to continue business and pay
outstanding dues.
Facts of the Case:
1. M/s. Chendur Film
International is a film production company registered under the GST Act.
2. Due to financial
difficulties, the company was unable to file GSTR-3B returns and pay GST for
October 2022, despite filing GSTR-1 returns.
3. The failure to file
subsequent monthly returns led to a statutory bar under Rule 59(6)(a) of the
CGST Rules 2017.
4. The company later paid
₹1,02,35,000/- in GST dues on 21.12.2023, but by that time, its GST
registration had already been cancelled (effective from 20.07.2024).
5. The petitioner
requested to pay the remaining dues in instalments, but no response was
received from the authorities, leading to this petition.
Submission by
Petitioner:
The petitioner's counsel
argued that the GST default was due to an unforeseen financial crisis. The
petitioner had already cleared significant dues and requested the court to
revoke the cancellation of GST registration, promising to settle the remaining statutory
dues within eight weeks.
Submission by
Respondent:
The respondent,
represented by Senior Panel Counsel Mr. Sai Srujan Tayi, acknowledged the
cancellation of GST registration due to non-payment of dues but highlighted
that the petitioner delayed in seeking legal recourse. The respondent left the
decision to the court’s discretion.
Findings and Judgement of
the Court:
1. The court acknowledged
the financial difficulties faced by the petitioner and noted that the company
had cleared a substantial portion of the outstanding GST dues.
2. The court concluded
that cancelling the petitioner’s GST registration would hinder its ability to
conduct business and pay future taxes, which would also affect the state’s
ability to collect revenue.
3. The court, therefore,
set aside the cancellation order and directed the authorities to restore the
petitioner’s GST registration within two weeks. The petitioner was instructed
to file all pending returns and clear any remaining statutory dues within eight
weeks thereafter.
Conclusion: The
court ruled in favour of M/s. Chendur Film International, granting them relief
by revoking the GST registration cancellation and allowing them to continue
their business, provided they adhere to the payment schedule for outstanding
dues.
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.
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