Facts of the Case

M/s.ALM Engineering & Co., a construction company voluntarily registered under GST No.33ABNFA2958F1ZF, could not file returns for six months as its accountant, instructed to file NIL returns, failed to do so due to the petitioner's ill health. Other taxpayers alerted the petitioner that its registration had been cancelled; it then discovered a show cause notice dated 09.12.2022 had been uploaded to the web portal, and the registration was cancelled with effect from 31.12.2022 (order dated 12.01.2023, Reference No. ZA330123054003E). Notification No.03/2023-Central Tax, dated 31.03.2023, extended the time for revocation up to 30.06.2023, but only for taxpayers whose cancellation occurred on or before 31.12.2022 -- the petitioner's cancellation fell just 12 days outside this window.

Issues Involved

  1. Whether an assessee whose GST registration was cancelled just outside the cut-off date specified in an amnesty notification, and who has since filed returns and paid dues, is entitled to restoration of registration.

Petitioner's Arguments

  • The impugned cancellation order was bereft of any details or reasons, and the show cause notice was issued only on the web portal, of which the petitioner, not proficient with computer access, remained unaware.
  • The Supreme Court's Suo Motu extension of limitation covering 15.03.2020 to 28.02.2022 should apply, and reliance was placed on the Suguna Cut Piece batch judgment condoning delay in revoking cancelled registrations.
  • The petitioner had already filed returns up to January 2023 with late fee and was willing to pay GST with late fee for the remaining period if the cancellation were set aside.

Respondent's Arguments

  • The Government Advocate did not dispute the facts but left the question of entitlement under the notification and the Suguna Cut Piece precedent to the Court's determination.

Court Order / Findings

  • The impugned order gave no reason for cancellation, and the petitioner's cancellation, on 12.01.2023, fell only marginally outside the 31.12.2022 cut-off in Notification No.03/2023, through no fault attributable to any delay by the petitioner in that specific window.
  • Where a taxpayer's registration was cancelled only marginally after the cut-off date fixed by an amnesty notification, and the issue is otherwise covered by the settled Suguna Cut Piece Centre formula for revival of cancelled registrations, the Court will extend the benefit of restoration rather than deny it on a narrow technical shortfall in the notification's timeline.
  • The writ petition was allowed and the respondent directed to restore the petitioner's GST registration, following which the petitioner was directed to file returns and pay tax and penalty as per law.

Important Clarification

  • Amnesty notifications for revocation of cancelled GST registrations fix cut-off dates, but courts have shown willingness to extend the benefit of the underlying Suguna Cut Piece Centre formula to taxpayers whose cancellation falls only marginally outside the notified window, particularly where the cancellation order itself discloses no reasons and the taxpayer is willing to comply with return-filing and payment conditions.

Sections Involved

  • Section 29, CGST Act, 2017 - cancellation of registration for failure to file returns.
  • Section 30, CGST Act, 2017 - revocation of cancellation of registration.

Decision – In Favour of

The writ petition was allowed in favour of the Assessee, with a direction to restore the GST registration on compliance with return-filing and payment conditions.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD).No.17972 of 2023
Coram: Justice S.Srimathy
Date of Order: 26.07.2023

Link to Download the Order

Click here to view/download the full order

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.