The Rajasthan High Court has held that the assessee is entitled to lodge an ITC claim when the department considers the issue of revocation of GST registration cancellation for the ITC Claim between the period of Date of Cancellation to the date of Restoration.

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The bench of Justice Vijay Bishnoi and Justice Praveer Bhatnagar has 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 the light of the notification dated March 31, 2023, issued by the competent authority under the Goods and Services Tax Act, 2017 expeditiously.

The petitioner-firm challenged the order dated February 2, 2022, passed by the respondent, by which the petitioner firm’s GST registration has been canceled on the ground of non-filing of its GST return. The appeal filed by the petitioner firm against the order has also been rejected by the Appellate Authority.

During the pendency of the petition, the competent authority under the Goods and Services Tax Act, 2017 issued a notification dated March 31, 2023. As per the notification, if the conditions are fulfilled, the cancellation of the registration effected on the ground of non-filing of the GST return could be revoked.

The court opined that the case of the petitioner firm is covered by the notification dated March 31, 2023, and the petitioner firm can move an application before the competent authority with a prayer for the restoration of its GST registration subject to fulfillment of the conditions.

“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 availing of Input Tax Credit in respect of the period from the cancellation of the registration till the registration is restored,” the court said.

Case Title: M/s R.K. Jewelers Versus The Union of India

Case No.: D.B. Civil Writ Petition No. 4236/2023

Date: 26/04/2023

Counsel For Appellant: Prahlad Singh

Counsel For Respondent: Hemant Dutt, Kuldeep Vaishnav

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