Sanjay Kumar Proprietor of M/s. Project Equipment and Construction Company, Dhanbad v. 1. The Principal Commissioner, CGST & CX, Ranch 2. The Superintendent CGST & CX
Case Details
IN THE HIGH COURT OF JHARKHAND AT RANCHI W.P.(T) No. 2773 of 2023 Sanjay Kumar Proprietor of M/s. Project Equipment and Construction Company, Dhanbad ... Petitioner Versus 1. The Principal Commissioner, CGST & CX, Ranch 2. The Superintendent CGST & CX, Bokaro … Respondents --- CORAM: HON’BLE MR. JUSTICE RONGON MUKHOPADHYAY For the Petitioner For the Resp. HON'BLE MR. JUSTICE DEEPAK ROSHAN : Mr. Nitin Kr. Pasari, Advocate : Mr. P.A.S. Pati, Advocate Order No. 04 Dated 26th June, 2023 ---
Legal Reasoning
Heard Mr. N. K. Pasari, learned counsel for the petitioner and Mr. P. A. S. Pati, learned counsel for the respondents. The prayer made in this writ application is for quashing of the order dated 30.08.2022 passed by the respondent no. 2 by issuing Form GST REG-19 by which the GST registration of the petitioner has been cancelled for failure to furnish the returns for a continuous period of six months. At the outset, learned counsel for the petitioner submits that a similar
Decision
matter has already been disposed of in W.P.(T) No. 1009 of 2023 and this writ application can also be disposed of in terms of the said order. Mr. P. A. S. Pati, learned counsel for the respondents does not dispute the aforesaid contentions. Learned counsel for the petitioner has further submitted that in the light of notification no. 3 of 2023 dated 31.03.2023 issued by the C.B.I.C., Directorate of Revenue, Ministry of Finance, Government of India, this writ application falls in the said category of cases. In W.P.(T) No. 1009 of 2023, it was held as follows: “7. We have considered the submissions of learned counsel for the parties. The petitioner approached this court against the affirmation of the order of cancellation of registration by the Appellate Authority. The petitioner had failed to comply with the provisions of Section 29 (2) (b) (c) of the CGST Act. However, it appears that C.B.I.C on the recommendation of GST Council in its 49th Meeting dated 18.02.2023, has issued the Notification No. -2- 3/2023-Central Tax dated 31.03.2023 in the Extra Ordinary Gazette, which reads as under: “G.S.R. 246 (E).- In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act), the 2. Central Government, on the recommendations of the Council, hereby notifies that the registered person, whose registration has been cancelled under clause (b) or (c) of sub-section (2) of section 29 of the said Act on or before the 31st day of December, 2022, and who has failed to apply for revocation of cancellation of such registration within the time period specified in section 30 of the said Act as the class of registered persons who shall follow the following special procedure in respect of revocation of cancellation of such registration, namely:- (a) the registered person may apply for revocation of cancellation of such registration upto the 30th day of June 2023; (b) the application for revocation shall be filed only after furnishing the returns due upto the effective date of cancellation of registration and after payment of any amount due as tax, in terms of such returns, along with any amount payable towards interest, penalty and late fee in respect of such returns; (c) no further extension of time period for filing application for revocation of cancellation of registration shall be available in such cases. Explanation:- For the purposes of this notification, the person who has failed to apply for revocation of cancellation of registration within the time period specified in section 30 of the said Act includes a person whose appeal against the order of cancellation of registration or the order rejecting application for revocation of cancellation of registration under section 107 of the said Act has been rejected on the ground of failure to adhere to the time limit specified under subsection (1) of section 30 of the said Act.” 8. Apparently, notification appears to be beneficial in nature as it provides a window of opportunity to all such registered persons whose registration were cancelled for non-compliance of the provisions of Section 29(2) (b) and (c) of CGST Act, 2017. Such registered persons may apply for revocation of cancellation of registration up to 30th June 2023, subject to filing of returns due upto the effective date of cancellation of registration and payment of any amount due as tax along with interest, penalty and late fee in respect of such returns. It is also made clear that no further extension of time period for filing application 3. for revocation of cancellation of registration shall be available in such cases. The Explanation to the notification also indicates that the notification shall cover not only those persons who failed to apply for -3- revocation of cancellation of registration within the time specified in Section 30 of the Act, but also those whose appeal against the order of cancellation of registration under Section 107 of the Act stood rejected or they failed to adhere to the time limit specified under sub-section (1) of Section 30 of the said Act to approach the Appellate Authority against the order rejecting application for revocation of cancellation of registration under section 107 of the Act. 9. The petitioner falls in the category of cases where the appeal preferred against the cancellation of GST registration has been rejected under Section 107(1) and (4) of CGST Act as time barred. However, since the provision is beneficial in nature and appears to ameliorate the difficulty faced by such registered persons whose GST registration stood cancelled, the writ petition is disposed of with a direction to the petitioner to approach the proper officer with an application for revocation of cancellation of registration by 30th June 2023, as per the Notification dated 31.03.2023 after complying with the conditions prescribed thereunder.” In view of the above, therefore, this writ application stands disposed of with a direction to the petitioner to approach the proper Officer with an application for revocation of cancellation of registration as per the notification dated 31.03.2023 after complying with the conditions prescribed thereunder. It goes without saying that if such application is preferred by the petitioner, the impugned order of cancellation of registration and affirmed in appeal shall not come in the way of the proper Officer to consider the prayer for revocation of cancellation of registration in terms of the Notification No. 3 of 2023. This writ application stands disposed of with the aforesaid observations and directions. (RONGON MUKHOPADHYAY, J.) (DEEPAK ROSHAN, J.) MK