Telangana HC allows manual revocation of GST registration despite mismatch in cancellation grounds

Sri Venkateshwara Enterprises Vs Deputy State Tax Officer (Telangana High Court)

In yet another practical ruling, the Telangana High Court addressed cancellation of GST registration where inconsistencies existed between the show cause notice and the final cancellation order. While the Court did not delve into merits, it ensured that the taxpayer is given an opportunity to seek revocation through manual filing despite expiry of timelines.

Case Background

• The petitioner, M/s. Sri Venkateshwara Enterprises, faced:
  • Cancellation of GST registration via Form GST REG-19 dated 23.12.2023.
• Notable discrepancy:
  • Show Cause Notice: Based on “investigation report received from higher officer”.
  • Final Order: Based on non-filing of returns for six consecutive months.
• Subsequent developments:
  • Appeal filed by the petitioner was dismissed as time-barred.
  • GST portal did not allow filing of revocation application due to limitation.
• Reason for default:
  • The petitioner cited family medical emergency (father’s accident and fracture).

Key Legal Issue

Whether a taxpayer can be allowed to seek revocation of GST registration manually, despite expiry of limitation and inconsistencies in grounds between show cause notice and cancellation order.

Arguments Presented

Petitioner

• Submitted that:
  • There was no intentional default in filing returns.
  • Delay was due to family medical emergency.
• Highlighted procedural issue:
  • Mismatch between SCN and final order grounds.
• Raised practical concern:
  • GST portal does not permit revocation application beyond time limit.
• Sought:
  • Direction to allow manual filing of revocation application.

Respondent (Department)

• Submitted that:
  • Cancellation was due to non-filing of returns for six months.
• Did not dispute:
  • The procedural route suggested by the petitioner.

Court Observations

• The Court noted that:
  • Cancellation was triggered by non-filing of returns.
• It considered:
  • Practical difficulties caused by portal restrictions.
• Without examining merits, the Court:
  • Focused on enabling the petitioner to seek revocation.

Final Judgment

• The writ petition was disposed of with directions.
• Directions issued:

1. The petitioner shall: