Case Law Details
G L Thippeswamy Contractor Vs Commissioner of Commercial Taxes (Karnataka High Court)
The Karnataka High Court considered a challenge to the cancellation of a GST registration and the subsequent dismissal of the taxpayer’s appeal. The GST registration had been cancelled on the ground that the petitioner failed to file GST returns continuously for six months. The appellate authority dismissed the appeal filed under Section 107 of the Karnataka Goods and Services Tax Act, 2017, holding that it was barred by limitation.
The petitioner contended that monthly returns had been filed up to the date of cancellation and expressed willingness to file all pending returns and pay the applicable tax, interest, and penalty once access to the GST portal was restored.
The High Court noted its consistent approach in cases where GST registration has been cancelled through an ex parte order and the taxpayer is willing to regularize compliance by filing pending returns and discharging tax liabilities. The Court observed that, in such circumstances, restoration of registration is ordinarily warranted subject to compliance conditions.
Accordingly, the Court partly allowed the writ petition and quashed both the cancellation order dated 17 November 2023 and the appellate order dated 9 June 2025. The relief was made conditional upon the petitioner uploading all pending returns and paying the applicable tax, interest, and penalty within two weeks from the date the GST portal is enabled for such filing.
The Court further clarified that any failure to comply with these conditions would entitle the authorities to proceed in accordance with law.
Key Takeaway
The Karnataka High Court reiterated that where GST registration is cancelled through an ex parte order and the taxpayer is willing to file pending returns and pay tax, interest, and penalty, restoration of registration may be granted subject to strict compliance within the time stipulated by the Court.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
The petitioner’s grievance is with the decision to cancel GST registration and the confirmation of such decision with the dismissal of the appeal filed under Section 107 of the Karnataka Goods and Services Tax Act, 2017. The petitioner is issued with a Show Cause Notice because of the failure to file returns continuously for a period of six months and the appeal against such decision is dismissed on the ground of limitation opining that the appeal had to be filed within three months from the date of the application.
Mr. Renukaprasad C M, the learned counsel for the petitioner, and Mr. K. Hema Kumar, the learned Additional Government Advocate, who accepts notice for the respondents, are heard in the light of these circumstances and the petitioner’s case that monthly returns have been filed until the date of order of cancellation of registration and that the petitioner is willing to file all Returns and offer taxes, interest and penalty once the Portal enables the petitioner.
It emerges that the Court’s consistent view, when the decision to cancel registration is an ex-parte decision and the assessee is willing to offer all the tax with interest, is to allow restoration of registration subject to the assessee filing upto date Returns and offering tax, interest and penalty within a reasonable time. Hence the following.
ORDER
[A] The petition is allowed-in-part quashing the Order dated 17.11.2023 [Annexure – C] and the Order in appeal dated 09.06.2025 [Annexure – D] subject to the condition that the petitioner, within two [2] weeks from the date the Portal enables, shall upload all the returns and offer taxes with interest and penalty.
[B] It is needless to observe that if there is any default, it would be open to the Authorities to act in accordance with law.
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