Next Era Enterprises Vs Deputy State Tax Officer (Telangana High Court)
Telangana High Court Allows Fresh Application for Revocation of GST Registration Cancelled for Non-Filing of Returns
The petitioner’s GST Registration Certificate was cancelled through Form GST REG-19 dated 25.03.2023 for non-filing of returns for a consecutive period of six months. The statutory period for filing an appeal against the cancellation order had expired, and the petitioner therefore approached the Telangana High Court seeking revocation of the cancellation. The petitioner submitted that business operations had been discontinued from January 2021 due to the COVID-19 pandemic and that a part-time accountant had been instructed to apply for voluntary surrender of the GST registration. The petitioner later learned that the registration had instead been suo motu cancelled for non-filing of returns. As the GST portal did not permit filing a revocation application because the prescribed time limit had expired, the petitioner sought permission to submit the application manually. The State Tax Department stated that the registration was cancelled due to non-filing of returns for six consecutive months. The High Court granted liberty to the petitioner to approach the competent authority within one week to submit the revocation application online, or physically if online submission was not accepted for technical reasons. The authority was directed to entertain the application and decide it in accordance with law within three weeks thereafter.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Learned counsel Sri Kohir Bhaskar Reddy appears for the petitioner.
Sri K.Sai Akarsh, learned Assistant Government Pleader representing Sri Swaroop Oorilla, learned Special Government Pleader for State Tax, appears for respondents No.1 and 2.
2. The Goods and Services Tax (GST) Registration Certificate of the petitioner bearing No.36BXZPM7172C1ZW was cancelled vide Order for Cancellation of Registration passed in Form GST REG-19 dated 25.03.2023 for non-filing of returns for a consecutive period of six months. Now, it is time-barred to prefer an appeal by the petitioner against the order of cancellation of GST registration. Therefore, the petitioner has filed the instant writ petition for revocation of cancellation of GST registration.
3. Learned counsel for the petitioner submits that due to COVID-19 pandemic, the petitioner was compelled to discontinue the business operations from January 2021 and therefore, the petitioner had instructed its part-time accountant to file an application for voluntary surrender of its GST registration. When the petitioner, with an intention to recommence its business after recovering from the financial losses, approached the Tax Consultant to ascertain whether the same GST registration could be restored on the existing Permanent Account Number, it came to know that its registration was suo motu cancelled by respondent No.1 on the ground of non-filing of returns for a continuous period of six months. Learned counsel for the petitioner submits that there was no wilful intention on the part of the petitioner in non-filing of returns as alleged by respondent No.1 in the show cause notice and the impugned order. Though the petitioner has sought to file an application for revocation of cancellation of GST registration, the GST portal does not permit the petitioner as being beyond the time limit prescribed for submission. Therefore, the petitioner prays that respondent No.1 may be directed to entertain the petitioner’s application manually and take a decision thereupon in accordance with law.
4. Learned Assistant Government Pleader for State Tax submits that the apparent reason for cancellation of GST registration was on account of non-filing of returns for the consecutive period of six months.
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 one week 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.
