Sheikh Mohammad Yousuf Vs Union Territory of J&K

Date: July 26, 2024

Court: High Court

Bench: Jammu and Kashmir

Type: Writ Petition

Judge(s)/Member(s): SANJEEV KUMAR, M.A. CHOWDHARY

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Subject Matter

Restoration of GST Registration: Compliance with Tax Obligations Required

Registration

Summary

The petitioner faced cancellation of GST registration by the Sales Tax Officer due to non-compliance, which they contested through an appeal. The Appellate Authority dismissed the appeal, citing it was filed beyond the stipulated time. Subsequently, the petitioner sought restoration of their GST registration under Article 226 of the Constitution of India. The court, recognizing similar precedents, directed the petitioner to restore their GST registration if they complied with the necessary legal formalities and paid due taxes and penalties within seven days. The court's decision was based on the specific circumstances of the case and did not address broader legal questions regarding the maintainability of the petition given the option of appeal.

FULL TEXT OF THE JUDGMENT OF JAMMU & KASHMIR AND LADAKH HIGH COURT

1. Pursuant to a show-cause notice dated 19^th March, 2020, reply was submitted by the petitioner on 31^st March, 2020. The Sales Tax Officer, Circle Anantnag, Kashmir, considered the reply and vide order dated 8^th April, 2020, cancelled the registration of the petitioner w.e.f. 1^st January, 2020.

2. Aggrieved of the cancellation of registration, the petitioner filed an appeal under Section 107(1) of the GST Act, 2017, before the Appellate Authority State Taxes, Appeals-I Kashmir Division, Srinagar. The appeal came to be dismissed by the Appellate Authority vide order dated 15^th May, 2024, on the ground that the same was barred by limitation. This is how the petitioner has invoked the Article 226 of the Constitution of India, seeking inter alia a direction to the respondents to restore his registration cancelled in terms of the order dated 8^th April, 2020.

3. Similar cases have come up before this Court, wherein, subject to the petitioners’ undertaking to deposit the tax and penalty along with interest in accordance with the GST Act, 2017, a direction has been issued to the Competent Authority to restore the registration of the said petitioners. The aforementioned orders have been passed on the concession given by the respondents to restore the registration of the defaulting dealers, provided they comply with law, by submitting the returns and depositing the sales tax and other dues payable by them under the GST Act, 2017. Attention of this Court is invited to order dated 29th April, 2024, passed in WP(C) 873/2024, and order dated 1^st April, 2024, passed in WP(C) 182/2024.

4. Having heard learned counsel for the parties and perused the material on record and also in view of the fact that the case in hand is similar and identical to the aforementioned cases and, therefore, this petition is disposed of by directing the petitioner to approach the Competent Authority for registration of his GST number within a period of seven days from today. The Competent Authority shall restore GST number of the petitioner immediately, subject to the completion of all requisite formalities. The petitioner shall file the returns and deposit the taxes and penalty along with interest within a period of seven days. In the event the needful is not done by the petitioner within stipulated period, this order shall cease to be in operation.

5. Since this petition has been disposed of based on the peculiar facts and circumstances of the case, and also on the analogy of the cases earlier decided, this Court has not gone into the legal issue raised by the learned Advocate General on behalf of the respondents. Nothing said in this order shall be construed as an expression of opinion by this Court that notwithstanding the availability of the alternative remedy of appeal, petition under 226 is directly maintainable

6. Disposed of.

7. Pursuant to a show-cause notice dated 21^st December, 2020, reply was submitted by the petitioner on 31^st December, 2020. The Sales Tax Officer, Circle Anantnag, Kashmir, considered the reply and vide order dated 13^th January, 2021, cancelled the registration of the petitioner w.e.f. 13^th January, 2021.

8. Aggrieved of the cancellation of registration, the petitioner has invoked Article 226 of the Constitution of India, directly without approaching the Competent Authority, seeking inter alia a direction to the respondents to restore his registration cancelled in terms of the order dated 13^th January, 2021.

9.Similar cases have come up before this Court, wherein, subject to the petitioners’ undertaking to deposit the tax and penalty along with interest in accordance with the GST Act, 2017, a direction has been issued to the Competent Authority to restore the registration of the said petitioners. The aforementioned orders have been passed on the concession given by the respondents to restore the registration of the defaulting dealers, provided they comply with law, by submitting the returns and depositing the sales tax and other dues payable by them under the GST Act, 2017. Attention of this Court is invited to order dated 29th April, 2024, passed in WP(C) 873/2024, and order dated 1^st April, 2024, passed in WP(C) 182/2024.

10. Having heard learned counsel for the parties and perused the material on record and also in view of the fact that the case in hand is similar and identical to the aforementioned cases and, therefore, this petition is disposed of by directing the petitioner to approach the Competent Authority for registration of his GST number within a period of seven days from today. The Competent Authority shall restore GST number of the petitioner immediately, subject to the completion of all requisite formalities. The petitioner shall file the returns and deposit the taxes and penalty along with interest within a period of seven days. In the event the needful is not done by the petitioner within stipulated period, this order shall cease to be in operation.

11. Since this petition has been disposed of based on the peculiar facts and circumstances of the case, and also on the analogy of the cases earlier decided, this Court has not gone into the legal issue raised by the learned Advocate General on behalf of the respondents. Nothing said in this order shall be construed as an expression of opinion by this Court that notwithstanding the availability of the alternative remedy of appeal, petition under 226 is directly maintainable

12. Disposed of.