Tadikamalla Prabhudas Contractor Vs Deputy State Tax Officer (Telangana High Court)
Summary: The Telangana High Court considered the writ petition filed by Tadikamalla Prabhudas Contractor seeking a procedural opportunity to apply for revocation of its cancelled Goods and Services Tax (GST) registration. The registration was cancelled through Form GST REG-19 dated 20 June 2024 because returns had not been filed for six consecutive months. The petitioner had filed an appeal against the cancellation, but it was dismissed as time-barred. The petitioner therefore approached the High Court after the GST portal no longer permitted submission of a revocation application due to expiry of the prescribed time limit.
The petitioner submitted that no GST dues remained outstanding and explained that the returns had not been filed because its accountant believed, in good faith, that no returns were required when there was no business during the relevant tax period. The petitioner maintained that the default was not intentional and sought permission to submit a physical revocation application for consideration by the competent authority. The State Tax Department confirmed that non-filing for six consecutive months was the apparent basis of cancellation but stated that it had no instructions to verify the petitioner’s claim that no dues remained payable.
Having considered these circumstances, the High Court directed that, if the petitioner approached the competent authority within one week of the order with a physical application for revocation of cancellation, the authority must entertain it and decide it in accordance with law within the following three weeks. The Court did not itself revoke the registration or determine whether the petitioner’s outstanding tax liability was nil. It disposed of the writ petition without costs and closed pending miscellaneous applications.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Sri K.P. Amarnath Reddy, learned counsel appears for petitioner.
Sri Swaroop Oorilla, learned Special Government Pleader for State Tax appears for respondents.
2. The Goods and Services Tax (GST) registration certificate of the petitioner bearing No.36AHHPT5164E2Z4 was cancelled vide impugned order passed in Form GST REG-19 dated 20.06.2024 for non-filing of returns for a consecutive period of six months. The petitioner preferred a time-barred appeal against the order of cancellation of registration certificate which has been dismissed on the ground of delay. Thereafter, the petitioner has filed the instant Writ Petition for revocation of cancellation of GST registration certificate.
3. Learned counsel for the petitioner submits that there are no Goods and Services Tax dues left to be paid by the petitioner. It is submitted that non-filing of returns was for the reason that the accountant of the petitioner had not filed returns on the bona fide impression that the petitioner had no business during the relevant tax period and there was no intentional delay. Though the petitioner has sought to file an application for revocation of cancellation of GST registration certificate, the GST portal does not permit the petitioner as being beyond the time limit prescribed for submission. Therefore, the petitioner prays that competent authority may be directed to entertain the petitioner’s application manually and take a decision thereupon in accordance with law.
4. Learned counsel for State Tax submits that he does not have instruction on the assertion that no outstanding dues remain against the petitioner. He, however, submits that the apparent reason for cancellation of GST registration certificate was on account of non-filing of returns for the consecutive period of six months.
5. Having regard to the aforesaid facts and circumstances and also taking note of the fact that the GST registration certificate of the petitioner was cancelled on account of non-filing of returns for the consecutive period of six months, if the petitioner approaches the competent authority within a period of one week from today for submission of application for revocation of cancellation of GST registration certificate, in physical form, the competent authority would entertain it and take a decision thereupon 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, if any pending, shall stand closed.
