GST Registration to be Cancelled for not Filling Returns for a continuous period of 6 Months: HC
Kerela High Court in matter of M/S. PHOENIX RUBBERS V/S THE COMMERCIAL TAX OFFICER has ruled out that, GST Registration can be Cancelled for not Filling Returns for a continuous period of 6 Months.
Relevant Text of the Order is given below:
11. Sec. 29(2)(c) mandates that power for the cancellation of registration in a case where there is continuous six months’ default on the part of the assessee in filing the returns. Since the competent official is obliged to issue a notice in the nature of Ext.P-1 before he passes final orders, it goes without saying that the requirement of 6 months’ continuous period should be fulfilled both at the time of issuance of the above said notice in terms of the proviso to Sec. 29(2) of the CGST Act read with Rule 22 of the CGST Act, but also at the stage of passing the final order cancelling the registration as per Sec. 29(2)(c). In the instant case, the jurisdictional fact regarding the six months’ continuous default on the part of the assessee is certainly fulfilled at the time of issuance of Ext.P-1 show cause notice dated 13.11.2019. Whereas, the said vital requirement of jurisdictional fact is non-existent as on the date of issuance of the impugned Ext.P-3 cancellation order dated 10.12.2019. If that be so, it is only to be held that the impugned order as per Ext.P-3 is illegal and ultra vires and is liable to be interdicted by this Court. Accordingly, it is ordered that the impugned Ext.P-3 order will stand quashed.
12. It is made clear that this Court has only decided the limited aspect regarding the jurisdictional fact required for invoking the power under Sec. 29(2)(c) of the CGST Act and in case the petitioner is liable for any of the manner for the above said Act, or in case the petitioner after the issuance of Ext.P-3 has subsequently defaulted six months’ continuous period in filing returns, etc. then the competent officer concerned is certainly at liberty to proceed in accordance with law, but certainly after compliance of the basic requirements of fairness and natural justice.
With these observations and directions, the Writ Petition (Civil) stands finally disposed of.
Click here to Download the Order
Tags : Judgement, High Court, GST
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