Facts of the Case

The petitioner, Mohamed Nainar Salamath, proprietor of M/s Abban Construction Company registered under GSTN 33AJIPS9491G3ZM, had his registration cancelled with effect from 27.01.2023 by the Superintendent of CGST and Central Excise, Kodaikanal, on the ground of non-filing of returns for six months. The petitioner explained that his accountant, despite instructions to file NIL returns, failed to do so due to the petitioner's ill health, and that he only learnt of the cancellation from other taxpayers. A show cause notice dated 08.10.2022 had been issued on the web portal; the petitioner replied on 08.11.2022, but the reply was found unsatisfactory. Government Notification No.03/2023-Central Tax dated 31.03.2023 extended amnesty benefits only to registrations cancelled on or before 31.12.2022, which excluded the petitioner whose cancellation was dated 12.01.2023 (effective 27.01.2023). The petitioner had already filed returns up to January 2023 and paid late fees, and expressed willingness to pay outstanding GST with late fee if restored.

Issues Involved

  1. Whether the cancellation order, being non-speaking and issued to the auditor's e-mail rather than the petitioner, was procedurally valid.
  2. Whether the petitioner, whose cancellation fell just outside the cut-off date in Notification No.03/2023-Central Tax, could nonetheless be granted the benefit of revocation.

Petitioner's Arguments

  • The show cause notice dated 08.10.2022 was sent to the Chartered Accountant's e-mail and never reached the petitioner directly; he only learnt of it and the resulting cancellation later.
  • The period from 13.03.2020 to 28.02.2022 stands excluded for limitation purposes per the Hon'ble Supreme Court's Suo Motu extension, and the Madras High Court's ruling in Tvl.Suguna Cut Piece vs Appellate Deputy Commissioner (ST) (GST) condoned similar delays in revoking cancelled registrations.
  • Although Notification No.03/2023-Central Tax dated 31.03.2023 extended time up to 30.06.2023 only for cancellations up to 31.12.2022, the petitioner's cancellation (12.01.2023) narrowly missed this cut-off through no fault of his own.
  • The petitioner had already filed returns up to January 2023 with late fee and was willing to pay outstanding GST and late fee for the remaining period if the registration were restored.

Respondent's Arguments

  • The impugned order recorded that the taxpayer had not replied or responded within the stipulated time, and hence the registration was cancelled suo motu.
  • The respondent did not accept the petitioner's explanation regarding non-receipt of the notice at the hearing stage.

Court Order / Findings

  • The Court held that although the petitioner's cancellation date (12.01.2023) fell just after the cut-off (31.12.2022) prescribed in Notification No.03/2023-Central Tax, the petitioner was nonetheless entitled to the benefit of restoration, since the extension itself was under active consideration during that period, and the issue was squarely covered by the ruling in Tvl. Suguna Cut Piece vs Appellate Deputy Commissioner (ST) (GST).
  • The writ petition was allowed, and the respondent was directed to restore the petitioner's GST registration number.
  • After restoration, the petitioner was directed to file returns and pay tax and penalty in accordance with law.

Important Clarification

Taxpayers whose GST registration cancellation falls just outside the cut-off date of a subsequent amnesty/restoration notification are not automatically excluded from relief — where the delay in extending such benefits was itself under governmental consideration, and coordinate precedent (such as Suguna Cut Piece) has condoned similar delays, courts will restore registration on terms of subsequent compliance (filing of returns and payment of tax, interest, and late fee).

Sections Involved

  • Notification No.03/2023-Central Tax, dated 31.03.2023 – extended the time for filing applications for revocation of cancellation of registration for specified past cancellations, up to 30.06.2023.
  • Section 29, Central Goods and Services Tax Act, 2017 – governs cancellation of registration, including for non-filing of returns for a continuous period.
  • Section 30, Central Goods and Services Tax Act, 2017 – provides for revocation of cancellation of registration on application.

Decision – In Favour of

The writ petition was allowed and the GST registration was ordered restored, subject to the petitioner filing pending returns and paying tax and penalty – the outcome favours the Assessee.

Case Details

Court: Madurai Bench of Madras High Court
Case No.: W.P.(MD)No.15425 of 2023
Coram: Hon'ble Mrs. Justice S. Srimathy
Date of Order: 07.07.2023

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.