Can Assessee be punished for mistake of their accountant?
Can Assessee's GST Registration be cancelled because Accountant filed NIL Return?
The question was before Madras High Court where Department followed the law but assessee's accountant did a mistake.
Interesting case
The accountant, without taking instructions from the assessee, filed "NIL" return on the presumption that assessee had not commenced the business, proper officer cancelled the registration and said accountant filed GSTR-10 (Final Return) and completed cancellation formalities.
The accountant, without taking steps to restore the cancelled GSTIN, accountant had filed GSTR-10 and accepted cancellation.
HELD:
It appeared that petitioner had only made genuine transactions, and an error had been committed only on the part of the accountant who had filed GSTR-10 returns after knowing about the cancellation of GSTIN registration of assessee.
Hence, the impugned order was liable to be set aside, and GSTIN registration was to be restored.
Title: E. Dharmaraj vs Assistant Commissioner of State Tax
Court: Madras High Court
Citation: W.P. No. 28339 of 2023
Dated: 17-Nov-2023
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification