Setu Joy Private Limited Vs State of Gujarat & Ors (Gujarat High Court)
The petitioner, a private limited company engaged in the business of operating amusement parks, cinemas, water parks, and resorts, challenged the cancellation of its GST registration and the subsequent rejection of its statutory appeal. The petitioner had obtained GST registration on 01.07.2017 and had regularly filed self-assessment returns and discharged tax liabilities up to 31.03.2024. However, due to financial difficulties, the petitioner failed to file periodic returns under Section 39 of the Gujarat Goods and Services Tax Act, 2017 from 01.04.2024 onwards.
Consequently, a show cause notice dated 09.09.2024 was issued proposing cancellation of registration under Section 29(2)(c) of the Act for continuous non-filing of returns. The petitioner did not appear at the scheduled personal hearing, resulting in an ex parte order dated 27.09.2024 cancelling the GST registration. Upon becoming aware of the cancellation, the petitioner filed an appeal under Section 107 of the Act on 11.04.2025 along with the prescribed pre-deposit. However, the appellate authority rejected the appeal on 06.05.2025 solely on the ground that it was filed beyond the prescribed limitation period, holding that it had no power to condone the delay.
Before the High Court, the petitioner submitted that the default was bona fide and arose due to financial hardship. It undertook to file all pending returns and to pay the entire outstanding tax liability along with applicable interest and late fees. The petitioner indicated that the self-assessed tax liability was ₹14,56,780 (comprising equal amounts of SGST and CGST), part of which was already available in its electronic cash ledger, and the balance would be paid as required. The petitioner further assured future compliance with statutory obligations.
