Unexplained GST Defaults Bar Writ Relief Against Registration Cancellation: Rajasthan HC

Bharti Marbles And Granites Vs Superintendent (Rajasthan High Court)

Summary: Rajasthan High Court dismissed a writ petition seeking quashing of the order dated 02.02.2024 and restoration of the GST registration of a partnership firm, holding that the petitioners had failed to provide any meaningful explanation for their prolonged non-compliance. The petitioners admitted that the statutory remedies of appeal and an application under Section 30 of the Central Goods and Service Tax Act, 2017 for revocation of cancellation could no longer be availed because both the prescribed and extendable limitation periods had expired. The Revenue pointed out that the petition did not explain why GST returns had not been filed on time and that even the show cause notice preceding cancellation had remained unanswered. Although the petitioners stated that disputes between the partners prevented them from availing the appellate/revocation remedy, they did not disclose the nature of those disputes or establish how any such dispute prevented filing of returns or submission of a reply to the show cause notice.

The petitioners relied upon Man Singh Tanwar vs. Commissioner Central Goods and Services Tax Department & Ors. and M/s Molana Construction Company vs. Central Goods and Service Tax Department & Ors., where the Rajasthan High Court had condoned delay and directed consideration of the taxpayers’ remedies. The Court distinguished those decisions on facts, observing that there was at least some semblance of reasons explaining the defaults or delay in those cases. Here, apart from a bald assertion concerning disputes between partners, there was no explanation whatsoever. The Court particularly noted the admitted failure both to file returns within time and to respond to the show cause notice. It therefore declined to exercise discretionary writ jurisdiction and dismissed the petition.