GSTN cancelled due to non-filing of Returns due to matrimonial issue of Taxpayer: HC grants opportunity to file pending Returns

The petitioner is not carrying on any business and it is averred in the petition that the petitioner is willing to voluntarily surrender its registration.

GST Number Cancelled

CA Pratibha Goyal | Mar 7, 2023 |

GSTN cancelled due to non-filing of Returns due to matrimonial issue of Taxpayer: HC grants opportunity to file pending Returns

GSTN cancelled due to non-filing of Returns due to matrimonial issue of Taxpayer: HC grants opportunity to file pending Returns

The petitioner has filed the present petition impugning an order dated 08.02.2023 passed by the Special Commissioner, Department of Trade and Taxes, Govt. of N.C.T. of Delhi, rejecting the petitioner’s appeal against the order dated 10.06.2022 (bearing Order No.ZA070622036555K), whereby the petitioner firm’s registration under the Goods and Services Act (GST No. 07AAFF08977R1Z2) was cancelled.

The petitioner is a firm constituted by two partners (Pallavi Makkar and Rachit Makkar), who were at the material time married to one another. They had started a business under the name and style of M/s OLFA Originals. It is pleaded that certain matrimonial issues arose between the constituent partners of the petitioner firm, which finally resulted in dissolution of their marriage.

In the meanwhile, the business of the petitioner firm suffered and the firm failed to comply with its obligation of filing the requisite returns under the Central Goods and Services Act, 2017/State Goods and Services Tax Act.

In view of the default in filing of the returns for a period exceeding six months, the concerned authority issued a show cause notice dated 16.04.2022 calling upon the petitioner to show cause as to why its GST registration should not be suspended. However, since at the material time, matrimonial disputes were festering between the two partners, they did not respond to the said show cause notice. Resultantly, the concerned authority passed an order dated 10.06.2022 cancelling the registration.

The petitioner appealed against the said decision before the Appellate Authority (Special Commissioner, Department of Trade and Taxes). However, the said appeal was dismissed on the ground of limitation.

The petitioner is not carrying on any business and it is averred in the petition that the petitioner is willing to voluntarily surrender its registration. However, the petitioner requires restoration of its GST registration to regularise its default, file the returns for the past period and pay the taxes, if any.

Mr. Aggarwal does not resist the petitioner’s request for restoration of the GST registration for the purpose of filing the returns.

In view of the above, this Court considers it apposite to direct the respondents to forthwith restore the GST registration of the petitioner in order to allow the petitioner to file the returns for the past period. The petitioner shall do so within a period of four weeks from the restoration of the GST registration. The petitioner shall also deposit taxes and interest, if any. After filing of the returns, the petitioner shall apply for voluntary surrendering of its GST registration. The said application would be processed in accordance with the law.

For Official Judgment Download PDF Given Below:

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