2020 (10) TMI 948 - Commissioner - GST

Revocation of cancellation of registration - due to non submission of reply to the show cause notice within the time specified - HELD THAT - Central Board of Indirect Taxes Customs New Delhi has clarified the issue vide circular No.99/18/2019-GST dated 23.04.2019 that where the registration has been cancelled with effect from the date of order of cancellation of registration all returns due till the date of such cancellation are required to be furnished before the application for revocation can be filed. Further in such cases in terms of the second proviso to sub-rule (1) of rule 23 of the said Rules all returns required to be furnished in respect of the period from the date of order of cancellation till the date of order of revocation of cancellation of registration have to be furnished within a period of thirty days from the date of the order of revocation. The appellant is required to follow the procedure as prescribed under rule 23 of the CGST Rules, 2017 as clarified vide circular No. No.99/18/2019-GST dated 23.04.2019 and to approach the adjudicating authority for further necessary action according to said rules/circular. Appeal disposed off.

Summary

Issues:
Cancellation of GST registration due to non-filing of returns, rejection of application for revocation of cancellation, principles of natural justice violation.

Analysis:
The appellant's GST registration was canceled due to non-filing of GSTR 3B returns, with the application for revocation rejected for failure to respond to a show cause notice within the specified time. The appellant contended that all pending returns had been filed, citing financial hardship and lack of awareness about online filing procedures. The Additional Commissioner noted the rejection was based solely on the failure to file a reply on the GST portal, which was deemed against the principles of natural justice.

Rule 23 of the CGST Rules, 2017 addresses the revocation of cancellation of registration. It stipulates that no application for revocation can be filed if registration was canceled due to failure to furnish returns unless the returns are filed and any tax amount due is paid along with interest, penalty, and late fees. The rule also mandates filing all returns from the date of cancellation till the date of revocation within thirty days of the revocation order.

The Additional Commissioner referred to a circular from the Central Board of Indirect Taxes & Customs clarifying the procedure for revocation of cancellation of registration. The circular emphasized that all due returns must be filed before applying for revocation, and any returns from the cancellation date to the revocation date must be submitted within thirty days of the revocation order. Consequently, the appellant was directed to adhere to the procedure outlined in Rule 23 of the CGST Rules, 2017 and the circular for further action by the adjudicating authority.

In conclusion, the appeal was disposed of in accordance with the legal provisions and clarifications provided, emphasizing the necessity for the appellant to follow the prescribed procedures for revocation of the GST registration cancellation.