High Court directed to restore GST Registration of Petitioner who could not file returns for six months due to health issues.

Petitioner:

1. Petitioner used to engage private accountant for the purpose of filing returns and who alone had the access to the GST portal for filing returns.

2. The petitioner used to furnish all the invoices and transactions details to the part time accountant, who uploaded monthly returns, GSTR-3B returns within the due dates and have also made payment of GST within time.

3. The petitioner was severely affected by stomach pain and he had taken medical treatment, which was latterly diagnosed as Hernia and hence, he had undergone surgery and bed rest for several months. During this period, the work, undertaken by the petitioner were only executed to a limited extent and the staff not uploaded the progress of work and hence, the returns could not be filed.

4. During the month of July 2022, the GSTIN registration was cancelled. 

5. Due to cancellation of GSTIN registration, the petitioner is unable to carry on his business.

6. He further submitted that by restoring the registration number, the state would benefit by receiving the tax components. The petitioner attempted to file a representation to revoke the cancellation of registration. The same was not accepted.

Revenue:

Respondents submitted that the petitioner though, initially registered with department thereafter failed to upload the monthly returns regularly. As per Section 29(2) of CGST Act, the person who fails to file the return for a continuous period of six months, his registration automatically cancelled. He further submitted that a show cause notice, dated 05.01.2022, was issued by the second respondent. The petitioner failed to respond to the same and thereafter, the registration was cancelled. Hence, he prayed for dismissal of the writ petition.

Held by Court:

This Court is of the view that restoring the registration would not cause any harm to the department on the other hand it would be beneficial for the state to earn revenue. Further, in the similar case, considering the over all facts and circumstances of the case, it was held that no useful purpose will be served by keeping those petitioners out of the GST regime, as such assessee would still continue to do business and supply goods/services. By not bringing them back to the Goods and Services Tax fold/regime, would not further the interest of the revenue. Relief was granted under similar circumstances with the following directions:

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Cancellation of GST Registration

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