The Court said that all pending returns be filed within four weeks of restoration along with payment of tax, interest and late fees, and clarified that such payments shall not be adjusted from any unutilised Input Tax Credit (ITC).
The Madras high court, in its recent decision said that business set back and accountant’s failure to file GST ( Goods and Services Tax ) returns is genuine cause. Therefore it directed the GST network to enable filing of returns to assessee.
In a petition filed by Tvl. Premium Tyres Private Limited, the petitioner whose GST registration was cancelled submitted that they could not follow up with the GST affairs due to financial constraints and financial set backs.
It was also submitted that they had genuinely believed that the accountant who was entrusted with filing of returns failed to do the same. Additionally, the counsel of the petitioner, Adv. S.Karunakar submitted that the taxpayer is willing to clear all the liabilities with penalty and interest.
Justice Krishnan Ramasamy, after hearing the submissions of the assessee, allowed to clear the liabilities. The judge said that reasons submitted for non-filing of returns for 6 months were found to be genuine.
Accordingly the court set aside the GST cancellation order and directed the GSTN to make necessary changes to the portal to facilitate the assessee to file the returns.
The Court, also said that all pending returns be filed within four weeks of restoration along with payment of tax, interest and late fees, and clarified that such payments shall not be adjusted from any unutilised InputTax Credit (ITC).
It further directed that any unutilised ITC shall remain frozen until scrutinised and approved by the competent authority. If the petitioner fails to follow the conditions, relief granted would automatically cease, cautioned the court.
The matter was disposed of.
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