Manikanta Electronics Services Center Vs State of Telangana (Telangana High Court)
The petitioner challenged an order dated 22.04.2024 imposing tax liability along with penalty for the period 2018-19. The primary contention was that after voluntary cancellation of GST registration on 16.07.2021, indicating zero tax liability, there was no reason to regularly check the GST portal. The impugned order was passed pursuant to a show cause notice dated 23.01.2024, nearly three years after cancellation. The petitioner’s rectification application was rejected on 26.11.2025 on the ground that it sought reexamination of the entire matter, which was beyond the scope of Section 161 of the CGST Act. The petitioner had also not appeared for hearings despite notice.
The petitioner sought remand of the matter to enable proper defence. The State contended that under Section 29(3) of the CGST Act, cancellation of registration does not extinguish liabilities for periods prior to cancellation. It was submitted that the impugned order related to failure to declare correct input/output taxes for 2018-19, warranting proceedings under Section 73. A show cause notice along with DRC-01 under Rule 142(2)/142(3) was issued through the common portal, providing opportunity to file objections or pay tax through DRC-03. Despite reminders and opportunities for personal hearing, no reply was filed, leading to imposition of tax and penalty.
