KSR Infrastructure Projects Vs State of Telangana & Others (Telangana High Court)
Telangana High Court Allows Taxpayer to Approach Authority for Revocation of GST Registration Cancellation Due to Financial Hardship
Summary: The Telangana High Court permitted KSR Infrastructure Projects to approach the competent authority for revocation of cancellation of its GST registration, which had been cancelled through FORM GST REG-19 dated 27.12.2023 for non-filing of returns for the prescribed periods. The petitioner, appearing in person, attributed the non-filing to severe financial hardship and active sub judice legal proceedings against the State and banking institutions. It submitted that, if given an opportunity, it would approach the competent authority and explain those circumstances as well as matters relating to payment of tax. The High Court did not adjudicate whether financial hardship constituted sufficient ground for revocation and did not itself restore the GST registration. Instead, it granted the petitioner two weeks to submit the revocation application online. If the application was not accepted online for technical reasons, the petitioner was expressly permitted to submit it in physical form. The competent authority was directed to entertain the application and decide it in accordance with law within three weeks thereafter. Thus, the order provides a procedural opportunity to pursue statutory revocation while leaving the merits of restoration to the competent authority.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Heard the petitioner-Mr. Kotha Ravinder Reddy, who appeared in person, and Mr. Swaroop Oorilla, learned Special Government
Pleader for State Tax appearing for the respondents.
2. The Goods and Services Tax (GST) registration certificate of the petitioner bearing No.36AAMFK7408C1ZD was cancelled vide impugned order in Form GST REG-19 dated 27.12.2023 for non- filing of returns for prescribed periods. The petitioner has filed the instant Writ Petition for revocation of cancellation of GST registration.
3. Petitioner submits that non-filing of returns by the petitioner- firm was on account of severe financial hardship and active sub- judice legal proceedings against the State and banking institutions. Petitioner further submits that if the petitioner-firm is allowed to approach the competent authority for revocation of cancellation of GST registration, the petitioner would prefer an application seeking revocation by explaining all these facts and payment of tax etc., before the competent authority.
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 prescribed periods.
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 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.
