Ex Servicemen Welfare Association Vs State of Bihar (Patna High Court)
The Patna High Court heard a writ petition challenging the cancellation of a GST registration and the dismissal of the statutory appeal against that cancellation. The petitioner, an association of ex-army personnel registered under the Society Registration Act and functioning on a no-profit-no-loss basis, sought quashing of the GST registration cancellation dated 31 January 2023 and the appellate order dated 24 April 2024. The petitioner also sought restoration of its GSTIN to enable future functioning for the welfare of ex-servicemen and their wards.
The petitioner stated that it had been granted provisional GST registration and had regularly filed returns since 2017. However, for the financial year 2022–23, returns could not be filed due to prolonged illness and weakness of the association’s Administrative Secretary. On account of non-filing of returns, the Joint Commissioner cancelled the registration. The petitioner contended that although the cancellation order referred to issuance of a show-cause notice, no such notice was received, and therefore no opportunity of hearing was afforded prior to cancellation. It was further submitted that the cancellation order itself reflected no tax liability, as the association was not profit-oriented.
Upon learning of the cancellation, the petitioner filed an appeal, but with a delay of fifteen months. The appellate authority dismissed the appeal solely on the ground of limitation. The petitioner argued that at the time of filing the writ petition, the GST Appellate Tribunal was not constituted, but since it had now been constituted, liberty should be granted to pursue an appeal under Section 112 of the Bihar Goods and Services Act, 2017, if the Court was not inclined to grant relief.
