Ramesh Vs Deputy State Tax Officer (ST) (Telangana High Court)
Telangana High Court Permits Revocation Application for Time-Barred GST Registration Cancellation
SEO Title: GST Registration Revocation Allowed Despite Expired Time Limit: Telangana High Court
SEO Description: Telangana High Court allows taxpayer to seek GST registration revocation despite expiry of the prescribed time limit, with physical filing if portal fails.
Summary: The Telangana High Court has permitted a taxpayer whose GST registration was cancelled for non-filing of returns to approach the competent authority for revocation of cancellation, notwithstanding the expiry of the prescribed time limit. The Court also provided an alternative mechanism where the GST portal does not accept the application for technical reasons.
Background of the Case
The petitioner, Mr. Ramesh, was registered under GST bearing Registration No. 36DHMPR433SA1ZF.
His GST registration was cancelled through Form GST REG-19 dated 25.01.2024 on the ground of non-filing of returns for the prescribed periods.
By the time the petitioner approached the Court, the statutory period for filing an appeal against the cancellation order had expired. Consequently, the petitioner approached the Telangana High Court seeking relief for revocation of the cancellation of his GST registration.
Petitioner’s Submissions
The petitioner submitted that there were no outstanding GST dues payable by him.
It was further submitted that the returns had not been filed because the petitioner’s accountant had failed to file them and that there was no intentional delay on the petitioner’s part.
The petitioner had attempted to file an application for revocation of cancellation. However, the GST portal did not permit submission of the application as the prescribed time limit had already expired.
Accordingly, the petitioner requested the Court to direct the competent authority to entertain the revocation application manually and decide it in accordance with law.
Department’s Submissions
The Department submitted that it did not have instructions regarding the petitioner’s assertion that no outstanding GST dues remained payable.
However, the Department acknowledged that the apparent reason for cancellation of the GST registration was non-filing of returns.
Telangana High Court’s Directions
After considering the facts and circumstances, the High Court took note of the fact that the GST registration had been cancelled on account of non-filing of returns.
The Court granted the petitioner an opportunity to approach the competent authority within two weeks for submission of an application for revocation of cancellation of GST registration through the GST portal.
Importantly, the Court further directed that:
- The petitioner may submit the revocation application online within two weeks.
- If the GST portal does not accept the application due to technical reasons, the petitioner may submit the application in physical form.
- The competent authority shall entertain the application and take a decision in accordance with law.
- The competent authority shall take such decision within three weeks thereafter.
Final Order
The writ petition was accordingly disposed of.
The Court did not itself revoke the cancellation of the GST registration. Instead, it enabled the petitioner to approach the competent authority with the revocation application and directed the authority to consider and decide the application in accordance with law.
Key Takeaway
The order demonstrates that where GST registration has been cancelled for non-filing of returns and the taxpayer is unable to submit a revocation application through the portal because the prescribed period has expired, the High Court may provide an opportunity to approach the competent authority for consideration of the revocation application.
The Telangana High Court has also recognized a practical solution where the GST portal itself does not permit submission: the taxpayer may submit the application in physical form, with the competent authority then required to consider it in accordance with law.
FULL TEXT OF THE JUDGMENT/ORDER OF TELANGANA HIGH COURT
Ms. Akruti Goyal, learned counsel appears for petitioner.
Mr. Swaroop Oorilla, learned Special Government Pleader for State Tax appears for respondent Nos.1 and 3.
2. The Goods and Services Tax (GST) Registration Certificate of the petitioner bearing No.36DHMPR433SA1ZF was cancelled vide Order for Cancellation of Registration passed in Form GST REG-19 dated 25.01.2024 for non-filing of returns for prescribed periods. Now, it is time-barred to prefer an appeal by the petitioner against the order of cancellation of GST Registration Certificate. Therefore, 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 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 appearing for the respondent Department 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.
5. Having regard to the facts and circumstances and also taking note of the fact that the GST registration of the petitioner was cancelled on account of non-filing of returns for prescribed periods, if the petitioner approaches the competent authority within a period of two weeks 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, if any pending, shall stand closed.
