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Entitlement of ITC after cancellation of GST registration can be considered during revocation: Rajasthan High Court

Rajasthan High Court

Rajasthan High Court: The petitioner challenged the order passed by the Appellate Authority, Commercial Tax, Jodhpur wherein the GST registration of the firm (Petitioner) was cancelled on the ground of non-filing of GST return. While exercising its civil writ jurisdiction, the division bench of Vijay Bishnoi and Praveer Bhatnagar J.J. held that the assessee was entitled to lodge an Income Tax Claim when the department considered the issue of revocation of GST registration cancellation.

In the matter at hand, during the pendency of the petition, the competent authority under the Goods and Service Tax Act, 2017 had issued a notification dated 31-03-2023 which stated that if the conditions were fulfilled, the cancellation of the registration effected on the ground of non-filing of the GST return could be invoked.

The Court opined that the case of the firm covers with the notification dated 31-03-2023 who can move an application before the competent authority with a prayer for restoration of its GST registration subject to fulfillment of the conditions mentioned in the said notification.

The Bench directed the firm to file an application for restoration of its GST registration before the competent authority which shall consider and decide the application filed by the petitioner firm in light of the notification dated 31-03-2023 issued by the competent authority under the Goods and Service Tax Act, 2017, expeditiously.

It however, clarified that the firm shall be entitled to lodge its claim for availment of Input Tax Credit in respect of the period from the cancellation of the registration till the registration was restored.

[R.K. Jewelers v Union of India, 2023 SCC OnLine Raj 737, decided on 26-04-2023]


Advocates who appeared in this case :

For the petitioner- Advocate Prahlad Singh;

For the respondent- Advocate Hemant Dutt and Advocate Kuldeep Vaishnav.

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