2026-VIL-118-GSTAT-HYD
  1. Home
  2. 2026-VIL-118-GSTAT-HYD

SGST Tribunal

GST - Revocation of cancellation of registration - Requirement of payment of interest, late fee and penalty under proviso to Rule 23(1) of the CGST Rules, 2017 as a condition for revocation - Respondent's registration was cancelled for failure to file returns for a continuous period of six months - First Appellate Authority allowed the appeal against cancellation upon verification that the respondent had filed the returns and paid the admitted tax - Department contended that the First Appellate Authority erred in allowing the appeal without considering the proviso to Rule 23(1) of the Rules which requires payment of interest, penalty and late fee as well before an application for revocation can be entertained - Whether the First Appellate Authority was within its powers to allow the appeal and restore the registration without causing verification that interest, late fee and penalty had also been paid along with the admitted tax for the relevant period - HELD - The liability arising from the returns in question is not confined to the principal tax alone but expressly extends to interest, late fee and penalty, which are substantive obligations integral to the correct adjudication of any dispute concerning the returns - The FAA approached the matter solely on the basis of verification of tax payment and filing of returns, without any discernible consideration of the proviso to Rule 23(1) of the Rules, and this omission goes to the root of the substantive liability and the completeness of the adjudicatory exercise, amounting to a jurisdictional and substantive error - Where the amounts claimed are effectively admitted, recovery of interest and late fee is to be pursued under Section 50 and Section 47 of the Act respectively through the statutory machinery under Section 79 of the Act, being the appropriate mechanism for recovery of such admitted arrears - In addition, penalty as contemplated under Rule 23 of the Rules is separately exigible - The order impugned is held to be modified and the appeal is disposed of
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Weekly Summary

VIL Video

GST & Customs updates: Sep'26
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Security-Code
New Code?

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Security-Code
New Code?

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?