Sai Laxmi Traders Vs Deputy State Tax Officer (Telangana High Court)
Summary: The Telangana High Court permitted Sai Laxmi Traders to submit an application for revocation of cancellation of GST registration despite expiry of the period for filing an appeal and the GST portal’s refusal to accept the application beyond the prescribed time limit. The Court granted the petitioner two weeks to approach the competent authority and directed that the application be submitted online in the first instance or physically if the portal did not accept it for technical reasons. The competent authority was required to entertain the application and decide it in accordance with law within three weeks thereafter.
Background of the dispute: The petitioner, Sai Laxmi Traders, held GST Registration No. 36AXYPK3376J1ZN. Its registration was cancelled through an order issued in Form GST REG-19 dated 29 May 2025 because GST returns had not been filed for a continuous period of six months. By the time the petitioner sought relief, the statutory limitation period for filing an appeal against the cancellation order had expired. Consequently, the petitioner approached the Telangana High Court seeking revocation of cancellation of its GST registration.
Petitioner’s explanation: The petitioner submitted that it had regularly filed GST returns and discharged its tax liabilities since obtaining registration. However, severe financial hardship and a downturn in business prevented the timely filing of monthly returns for a short period. The responsibility for filing returns had been entrusted to a Chartered Accountant, who failed to submit them within the appropriate time. The petitioner asserted that the delay was not intentional. Although a show-cause notice had been issued, the Chartered Accountant did not inform the petitioner, resulting in the cancellation order being passed without the petitioner responding to the notice.
Difficulty in filing revocation application: The petitioner attempted to submit an application for revocation of cancellation of GST registration, but the GST portal did not permit the application because the prescribed time limit had expired. The petitioner’s counsel therefore requested that the Deputy State Tax Officer be directed to accept a manual application and decide it in accordance with law.
State Tax Department’s submissions: The learned Special Government Pleader for State Tax submitted that the apparent reason for cancellation of the petitioner’s GST registration was its failure to file returns for six consecutive months.
High Court’s decision: Considering the facts and circumstances, the Telangana High Court granted liberty to the petitioner to approach the competent authority within two weeks from the date of the order for submission of an application for revocation of cancellation of GST registration. The Court directed that the petitioner should submit the application online and, if the portal did not accept it for technical reasons, could submit it physically. The competent authority was directed to entertain the application and decide it in accordance with law within three weeks thereafter.
Legal significance: The ruling provides procedural relief to a taxpayer whose GST registration was cancelled for non-filing of returns and who faced difficulty submitting a revocation application after expiry of the prescribed limitation period. The High Court permitted an online application, with physical submission as an alternative where technical difficulties prevented online filing. However, the Court did not itself restore the registration or determine that the petitioner was automatically entitled to revocation. The merits of the application remained for consideration by the competent authority.
Final outcome: The writ petition was disposed of with directions permitting submission of the revocation application within two weeks and requiring a decision within three weeks thereafter. No order as to costs was made, and all pending miscellaneous applications were closed.
FULL TEXT OF THE JUDGMENT/ORDER
Mr. V.Ganesh Bhujanga Rao, learned counsel for the petitioner appears in virtual mode.
Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for respondents No.1 and 2.
2. The Goods and Services Tax (GST) registration of the petitioner bearing No.36AXYPK3376J1ZN was cancelled vide Order for Cancellation of Registration passed in Form GST REG-19 dated 29.05.2025 for non-filing of returns for a continuous period of six months. Now, it is time-barred to prefer an appeal by the petitioner against the order of cancellation of GST registration. Therefore, the petitioner has filed the instant writ petition for revocation of cancellation of GST registration.
3. Learned counsel for the petitioner submits that since the date of inception of GST registration, the petitioner has been filing the GST returns from time to time and discharging the tax liability thereon and due to severe financial hardship and business downturn, the petitioner was unable to file monthly returns for a short period. Moreover, filing of returns was assigned to Chartered Accountant, who had failed to file the same in appropriate time and there was no intentional delay on the part of the petitioner. Meanwhile, show-cause notice was issued, but the Chartered Accountant did not inform the same to the petitioner. As a result of which, the impugned order of cancellation of GST registration of the petitioner has been passed. Though the petitioner has sought to file an application for revocation of cancellation of GST registration, the GST portal did not permit the petitioner as being beyond the time limit prescribed for submission. Therefore, he prays that respondent No.1 may be directed to entertain the petitioner’s application manually and take a decision thereupon in accordance with law.
4. Learned Special Government Pleader for State Tax submits that the apparent reason for cancellation of GST registration of the petitioner was on account of non-filing of returns for a consecutive period of six months.
5. Having regard to the aforesaid facts and circumstances, we are inclined to allow liberty to the petitioner to approach the competent authority within a period of two weeks from today for submission of application for revocation of cancellation of its GST registration online and if it is not being accepted for any technical reasons, then to submit it in physical form. The competent authority would entertain it and take a decision thereon in accordance with law within a period of three weeks thereafter.
6. The instant writ petition is accordingly disposed of. There shall be no order as to costs.
Miscellaneous applications pending, if any, shall stand closed.
