Sri Sadguru Constructions vs. The Union Of INDIA

Held

The Court acknowledged that the GST registration certificate was cancelled due to the non-filing of returns for six consecutive months. However, considering the facts and circumstances, and the petitioner's plea for a direction to approach the competent authority, 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 the cancellation of their GST registration certificate, the competent authority shall entertain the application and take a decision in accordance with the law within three weeks thereafter. The writ petition was disposed of accordingly, with no order as to costs. The Court did not explicitly decide on the legality of the cancellation itself but provided a procedural remedy.

Facts

The petitioner, Sri Sadguru Constructions, had its Goods and Services Tax (GST) registration cancelled on July 23, 2024, by the Deputy State Tax Officer (Respondent No. 5) for non-filing of returns for six consecutive months. The petitioner filed a time-barred appeal against this cancellation order, which was dismissed by the Appellate Joint Commissioner of State Tax (Respondent No. 3) on October 11, 2025, due to the delay. Subsequently, the petitioner filed a writ petition before the High Court seeking revocation of the GST registration cancellation. The petitioner contended that the non-filing of returns was due to business cessation and issues with their tax consultant, and they were unaware of the show cause notice. They also stated that the GST portal did not allow them to file a revocation application due to being beyond the prescribed time limit.

Key Issues

1. Whether the cancellation of the petitioner's GST registration, based on non-filing of returns for six consecutive months, is legally sustainable, considering the petitioner's explanation for the non-compliance? 2. Whether the petitioner is entitled to a direction for manual submission of their application for revocation of GST registration cancellation, given the portal's limitations and the circumstances explained? Petitioner's Arguments: The petitioner argued that the non-submission of returns was not intentional but resulted from the cessation of business and the failure of their tax consultant to file returns despite instructions. They claimed ignorance of the show cause notice. The petitioner further contended that the GST portal's time limitations prevented them from filing a revocation application, and therefore, they sought a direction for manual submission and consideration by the authorities. Revenue's Arguments: The learned Special Government Pleader for State Tax submitted that the cancellation of GST registration was a consequence of the petitioner's failure to file returns for a consecutive period of six months.