M/S. Smart Metals INDIA vs. The Superintendent Of Central Tax
Held
The Court noted that the GST registration certificate was cancelled due to non-filing of returns for six consecutive months. The petitioner's counsel submitted that there were no outstanding dues and the non-filing was due to a bona fide impression by the accountant. The petitioner was unable to file a revocation application through the portal due to time bar. The Court directed that if the petitioner approaches the competent authority within two weeks from the date of the order for submission of the application for revocation of cancellation in physical form, the competent authority shall entertain it and take a decision in accordance with law within three weeks thereafter. The Court disposed of the writ petition on these terms.
Facts
The petitioner, M/s. Smart Metals India, filed a writ petition challenging the cancellation of its GST registration by the Superintendent of Central Tax. The registration was cancelled on January 27, 2025, for non-filing of returns for six consecutive months. The petitioner contended that there were no outstanding GST dues and that the non-filing was due to a bona fide impression by its accountant that there was no business activity during the period. The petitioner was unable to file an application for revocation of cancellation through the GST portal as it was time-barred. The petitioner sought a direction for the respondent to manually entertain its application for revocation.
Key Issues
1. Whether the cancellation of GST registration for non-filing of returns for six consecutive months, without considering the petitioner's explanation for the non-filing, is arbitrary and illegal under the CGST Act, 2017 and the Telangana GST Act, 2017? Petitioner's arguments: The petitioner argued that the cancellation was arbitrary and illegal as there were no GST dues and the non-filing was unintentional. They relied on the principle that genuine business operations should not be hampered by procedural lapses, especially when there is no revenue loss to the government. They also argued that the inability to file a revocation application due to portal limitations necessitated judicial intervention. Respondents' arguments: The respondent's counsel stated they had no instructions regarding the assertion of no outstanding dues. They confirmed that the cancellation was based on the non-filing of returns for six consecutive months.
Sections Cited
CGST Act, 2017, Telangana GST Act, 2017
AI-generated summary — verify with the full judgment below
Between: ti//s. Smart Metals lndia, Represented by its Proprietress Swetha Vodderalu, 2-1-911, Saraswathi Colony, Road No.3, Uppal, Hyderabad Ranga Reddy, Telangana, 500039 ...PETITIONER [ 3488 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD (Special Original Jurisdiction) WEDNESDAY, THE SEVENTEENTH DAY OF DECEMBER TWO THOUSAND AND TWENTY FIVE PRESENT THE HONOURABLE THE CHIEF JUSTICE APARESH KUMAR SINGH AND THE HONOURABLE SRI JUSTICE G.M. MOHIUDDIN WRIT PETITION NO: 38372 OF 2025 The Superintendent of Central Tax, Somajiguda Range, Punjagutta Division, Banjara Hills, Hyderabad-500034. AND 1
Union of lndia, Represented by its Secretary, Department of Revenue, Ministry of Finance, North Block, New Delhi- 110001. ...RESPONDENTS Petition under Article 226 ol the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a writ or order or direction particularly one in the nature of writ of Mandamus setting aside the Order for Cancellation of Registration passed by the first respondent in Form GST REG - 19, vide Ref. No.2A360125072431V' daled 27 .01.2025 as arbitrary, illegal, contrary to the pro
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