M/S. Rainbow Tmc vs. Deputy State Tax Officer

Held

The Court held that the order dated 23.04.2025 rejecting the petitioner's application for revocation of GST registration cancellation was to be set aside. The Court reasoned that the respondents' submission indicated a willingness to reconsider the matter if a fresh application was filed. The Court found merit in the petitioner's grievance regarding the rejection order lacking proper application of mind and the procedural difficulties faced. The ratio decidendi is that where a statutory authority's order is found to be lacking application of mind or where procedural impediments prevent a party from availing their statutory remedies, the High Court, in its writ jurisdiction, can direct reconsideration of the matter. The Court directed the petitioner to file a fresh application for revocation of cancellation of GST registration within two weeks, permitting manual filing if online submission is not entertained. The 1st Respondent was directed to consider this fresh application in accordance with law within a reasonable time after providing an opportunity to the petitioner to be heard. No order as to costs was made.

Facts

The petitioner, M/s. Rainbow TMC, approached the High Court challenging the order dated 23.04.2025 passed by the 2nd Respondent (Deputy Commissioner) rejecting its application for revocation of GST registration cancellation. The petitioner also challenged the cancellation order dated 24.02.2023 passed by the 1st Respondent (Deputy State Tax Officer). The petitioner contended that the rejection order lacked application of mind and referred to a notice of the same date. The petitioner further stated that it faced difficulties in filing the revocation application online and was compelled to approach the Court. The respondents, through their counsel, submitted that if the petitioner files a fresh application for revocation, it would be considered in accordance with law after providing an opportunity to show cause.

Key Issues

1. Whether the order rejecting the petitioner's application for revocation of GST registration cancellation, dated 23.04.2025, suffers from non-application of mind and is arbitrary, thereby violating the petitioner's right to carry on business and contravening the provisions of the Central Goods and Services Tax Act, 2017 and the Telangana Goods and Services Tax Act, 2017? Petitioner's arguments: The petitioner argued that the impugned rejection order did not demonstrate any application of mind and erroneously referred to a notice issued on the same date as the rejection. Furthermore, the petitioner claimed to have encountered technical difficulties in filing the revocation application online, necessitating judicial intervention. Respondents' arguments: The respondents, represented by the learned Assistant Government Pleader, stated that if the petitioner were to file a fresh application for revocation of the GST registration cancellation, the same would be duly considered in accordance with the law, providing the petitioner with an adequate opportunity to present their case and show cause.