Srr Enterprises vs The Additional Commissioner ...
2023 Latest Caselaw 2839 Tel

         HONOURABLE SRI JUSTICE P.SAM KOSHY
                          AND
     HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY

              WRIT PETITION NO.25671 OF 2023

ORDER: (per Hon'ble Sri Justice P.Sam Koshy)


      The challenge in the writ petition is to the order in appeal,

dated 08.08.2023, whereby the appeal by the petitioner against

the order in original, dated 25.03.2023, for revocation of

cancellation of GST registration of the petitioner stood rejected.


2.    Learned counsel for the petitioner in this case has

admitted two things, i) that there was a delay on his part in

filing the returns and ii) that there was also delay on his part so

far as filing of appeal is concerned. Nonetheless, the learned

counsel for the petitioner submits that the delay at the first

instance in filing of the returns took place on account of certain

administrative reasons, where the work executed by the

petitioner, who is otherwise is a civil work contractor, used to

receive the payments on ad hoc basis periodically and in the

process, there was a delay that occurred. Leaned counsel for the

petitioner also submits that the petitioner is also ready to pay

whatever is the late fee or otherwise, which are required for not

having filed a return within the stipulated period. It was also the
                                                                           PSK,J& LNA,J
                                                                     WP No.25671 of 2023
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contention of the learned counsel for the petitioner that

cancellation of GST registration of the petitioner is not going to

benefit the respondent-Department in any manner for the

reason that unless the registration part is restored, the

petitioner would not be in a position to further submit the GST

returns and pay the regular taxes under the GST law.

3. Learned counsel for the petitioner relies upon the decision

of Hon'ble Delhi High Court in the case of Kritika Agarwal vs.

Union of India and others 1, wherein the High Court in the case

of cancellation of GST registration had observed that "the

measure of cancellation of GST must be exercised with

circumspection and only in cases, where it is necessary". This in

otherwise means that the intention of the Hon'ble Delhi High

Court by allowing the writ petition was that the authorities

concern should take a more pragmatic approach so far as the

case where GST registration is concerned and cancellation

should not be resorted in a mechanical manner or as a matter of

routine. Similar decision has also been passed by Division

Bench of this Court in W.P.No.36174 of 2022 vide order dated

20.09.2021, where the Division Bench had set-aside the order of

W.P.(C) 9424/2023 and CM Nos.36000/2023 &36001/2023 PSK,J& LNA,J WP No.25671 of 2023

the appellate authority and the matter had been remanded back

for fresh consideration on its own merits..

4. Learned counsel for the Department, on the other hand,

contends that since there is an admitted delay on the part of the

petitioner both at the first instance of filing of the returns and

then at the time of filing of the appeal, the order passed by the

authority cannot said to be in any manner contrary to law.

5. Having heard the contentions put-forth on either side and

on perusal of the record, given submission by the learned

counsel for the petitioner that petitioner is ready to pay

whatever is the late fee as per the Rules so far as the delayed

submission of returns is concerned. Taking into consideration

the judgment of the Hon'ble Delhi High Court in the case of

Kritika Agarwal (supra), we are inclined to set-aside the two

orders i.e., the impugned order of the appellate authority, dated

08.08.2023 and the order of cancellation of GST registration,

dated 25.03.2023 and remit the matter back to the respondent

No.3 to consider the request of the petitioner so far as

restoration of registration is concerned.

6. It goes without saying that the petitioner would be

required to pay whatever is the late fee under the Rules and PSK,J& LNA,J WP No.25671 of 2023

Circulars governing the field so far as the delayed submission of

returns is concerned. It is also made clear that since we have

remitted it back to the respondent No.3, the question of the

limitation should not come in the way of petitioner so far as

approaching the respondent No.3 seeking for restoration of

registration of GST is concerned.

7. The Writ Petition stands allowed. There shall be no order

as to costs.

8. Pending miscellaneous applications, if any, shall stand

closed.

__________________________________ P.SAM KOSHY,J

__________________________________ LAXMI NARAYANA ALISHETTY,J Date: 03.10.2023 Ktm/kkm PSK,J& LNA,J WP No.25671 of 2023

HONOURABLE SRI JUSTICE P.SAM KOSHY AND HON'BLE SRI JUSTICE LAXMI NARAYANA ALISHETTY

WRIT PETITION NO.25671 OF 2023

Date: 03.10.2023

Ktm/kkm