Dharmesh Deshani (OPC) Private Limited Vs Union of India (Gujarat High Court)
Gujarat High Court recently addressed a petition filed by Dharmesh Deshani (OPC) (P.) Ltd. against the Union of India, challenging the cancellation of its Goods and Services Tax (GST) registration despite having deposited tax liabilities. The case highlights the procedural aspects of GST compliance and the High Court’s stance on rectifying defaults when tax is already paid.
The petitioner sought to quash a show cause notice dated January 9, 2024, and a subsequent order dated February 9, 2024, which cancelled its GST registration effective September 30, 2023. Additionally, the petitioner challenged the rejection of its revocation application and an appellate order affirming the cancellation. The core of the petitioner’s argument was its inability to file GST returns from September 2023 to December 2024.
However, the petitioner’s advocate, Mr. Avinash Poddar, informed the court that the company had already computed its tax liability based on available records and transactions. This liability, including interest, had been discharged through deposits in its Electronic Cash Ledger. An affidavit detailing these deposits was submitted to the court.
Conversely, Assistant Government Pleader Ms. Shrunjal Shah, representing the respondents, stated that if the petitioner was permitted to file the overdue GST returns, the authorities would process them and determine the tax liability in accordance with the law, taking into account the deposits already made.
