HC Directed to Take Liberal Approach to Allow Assesse for Late Filing of Revocation Application for Cancelled GST Registration

Case Detail: Mohammad Nassruddin v. Principal Commissioner, Central Goods and Services Tax and CX - [2024] 160 taxmann.com 444 (Jharkhand)

Judiciary and Counsel Details

• Shree Chandrashekhar, ACJ. & Navneet Kumar, J.
• Nitin Kumar Pasari, Adv. for the Petitioner.
• Amit Kumar, Sr. S.C. (GST) for the Respondent.

Facts of the Case

The petitioner, a registered proprietary firm, had its registration cancelled due to failure to furnish returns for a continuous period of six months. Despite the expiration of the time for filing an application for revocation of cancellation of registration, the petitioner approached the High Court seeking relief. The petitioner relied on a notification extending the time for filing such applications until June 30, 2023, due to which they could not themselves avail of the benefit within the prescribed period.

High Court Held

The High Court acknowledged the consequences of cancellation of registration for the petitioner’s business and discussed on provisions under the GST law aimed at providing opportunities for defaulting firms to continue their operations. Emphasizing the need for a liberal approach, the Court held that despite the lapse of the prescribed period under section 30 of the CGST Act, the petitioner should be allowed to file an application for revocation of cancellation of registration. Consequently, the High Court granted permission to the petitioner to file an application for revocation of cancellation of GST registration within a period of 30 days from the date of the order, with the period of limitation to be counted from the same date.