Deena Grace Prathipati vs. The Deputy State Tax Officer

Held

The Court noted that the GST registration certificate was cancelled due to non-filing of returns for six consecutive months. The Court directed that if the petitioner approaches the competent authority within one week from the date of the order with a physical application for revocation of cancellation of GST registration, the competent authority shall entertain it and decide the application in accordance with law within three weeks thereafter. The Court disposed of the writ petition accordingly. The issue of whether there were outstanding dues was not explicitly decided, but the direction for the authority to consider the revocation application implies a pathway for resolution.

Facts

The petitioner, Deena Grace Prathipati, proprietrix of Chayah Industries, filed a writ petition challenging the cancellation of her GST registration by the Deputy State Tax Officer (1st Respondent) on September 13, 2024. The cancellation was due to non-filing of GST returns for six consecutive months. The petitioner argued that she relied on her accountant for filing returns and was unaware of the show cause notice. She also stated that she had no outstanding GST dues. The petitioner attempted to file an application for revocation of cancellation, but the GST portal deemed it time-barred. Consequently, she sought a direction for the authority to entertain her application manually. The State Tax counsel stated they had no instructions regarding the assertion of no outstanding dues but confirmed the cancellation was for non-filing of returns.

Key Issues

1. Whether the cancellation of GST registration for non-filing of returns for six consecutive months, without providing sufficient opportunity of being heard and without following due process, is arbitrary and violative of principles of natural justice and the Constitution of India (Articles 14, 19(1)(g), and 21)? Petitioner's Arguments: The petitioner contended that the cancellation was arbitrary and contrary to the GST Act, the Constitution, and principles of natural justice. She claimed ignorance of the show cause notice due to reliance on her accountant and stated no GST dues were outstanding. She further argued that the GST portal's time-bar for filing a revocation application prevented her from seeking redressal through the prescribed channel, necessitating judicial intervention. Revenue's Arguments: The counsel for the State Tax respondents stated they had no instructions regarding the petitioner's assertion of having no outstanding dues. They confirmed that the cancellation was based on the ground of non-filing of returns for six consecutive months.