Assessee can claim ITC on revocation of cancelled registration

Recently, the Hon’ble Rajasthan High Court in the case of M/s R.K. Jewelers Versus The Union of India vide order dated 26.04.2023, held that when the competent authority considers the issue of revocation of GST cancellation of petitioner firm under the Notification No. 03/2023-Central Tax dated 31.03.2023 i.e. “Amnesty Scheme relating to revocation of cancellation of registration”, the petitioner firm shall be entitled to lodge its claim for availing of Input Tax Credit in respect of the period from the cancellation of the registration till the registration gets restored.

The Order reads as under:

This writ petition has been filed by the petitioner-firm challenging the order dated 02.02.2022 passed by the respondent No.4, whereby the GST registration of the petitioner-firm has been cancelled on the ground of non-filing of GST return by it. The appeal filed by the petitioner-firm against the said order has also been rejected by the Appellate Authority.

During the pendency of this writ petition, the competent authority under the Goods and Services Tax Act, 2017 had issued a notification dated 31.03.2023 and as per the said notification, on the conditions being fulfilled, the cancellation of registration effected on the ground of non-filing of GST return, could be revoked.

This Court is of the opinion that the case of the petitioner firm covers with the notification dated 31.03.2023 and the petitioner firm 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.

In such circumstances, this writ petition is disposed of with liberty to the petitioner-firm to file application for restoration of its GST registration before the competent authority, which shall consider and decide the application filed by the petitioner-firm in the light of the notification dated 31.03.2023 issued by the competent authority under the Goods and Services Tax Act, 2017 expeditiously.

It is made clear that when the competent authority considers the issue of revocation of cancellation of petitioner firm GST registration under the notification dated 31.03.2023, the petitioner-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 is restored.

To read the complete judgment 2023 Taxo.online 497