M/S Jay Jay Consultants vs. The Superintendent Of Central Tax
Original PDF →Facts
The petitioner failed to reply to an assessment order under Section 62 of the CGST/SGST Act, 2017, due to bonafide reasons and unavoidable circumstances. Consequently, their GST registration was cancelled.
Held
The Court set aside the order of cancellation of GST registration, allowing the petitioner one more opportunity to comply. The petitioner must file returns and pay taxes with interest and penalty within four weeks.
Key Issues
Whether the cancellation of GST registration was justified given the petitioner's bonafide reasons for non-compliance with the assessment order?
Sections Cited
Section 62
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER In this petition, petitioner seeks the following reliefs: “(a) Issue an appropriate writ, order or direction more particularly one in the nature of Writ of Mandamus to the Respondent No.1 either to open the online portal so as to enable the Petitioner to again file the Revocation application for Cancellation of Registration Application electronically or accept manually filed revocation application dated 29.09.2021 in Annexure-K. (b) Quash the order of cancellation of Registration Order in Reference Number: ZA2902200385930 dated 14.02.2020 passed by the Respondent No.1 in Annexure-B1. (c) Direct the Respondent No.1 and other respondents to allow the Petitioner to avail the Input Credit Credits for the tax period from April 2020 to March 2021. (d) Waive interest for delayed payment of tax from 01.10.2021 and (e) Pass such other or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case in the interest of justice including costs of the writ petition.” NC: 2025:KHC:14315
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
In addition to reiterating the various contentions urged in the petition and referring to the material on record, learned counsel for the petitioner submits that the petitioner has obtained the GST registration certificate. The respondent No.1 issued a Show Cause Notice dated 26.11.2019 to which the petitioner filed its replies dated 03.12.2019 and 16.12.2019 seeking time to file its returns. Subsequently, respondent No.1 passed an assessment order under Section 62 of CGST/SGST Act, 2017 in Form GST ASMT-13 dated 20.12.2019 imposing a tax liability of Rs.3,38,41,759/- and the same went unnoticed by the petitioner. However, due to bonafide reasons, unavoidable circumstances and sufficient cause, the petitioner could not reply to the said order, consequently, the respondent proceeded to pass the impugned order dated 26.11.2019 canceling the GST registration of the petitioner stating that the petitioner has neither filed the returns nor furnished any reply to the ASMT-13 order. Aggrieved by the impugned orders, the petitioner is before this Court by way of the present petition. NC: 2025:KHC:14315
Heard learned counsel for the petitioner and learned counsel for the respondents and perused the material on record.
In the light of the specific assertion on the part of the petitioner that its inability and omission to reply to the Order in Form GST ASMT – 13 dated 20.12.2019 was due to bonafide reasons, unavoidable circumstances and sufficient cause, by adopting a justice oriented approach, I deem it just and appropriate to set aside the impugned order and remit the matter back to the concerned respondents in order to provide one more opportunity to the petitioner.
Learned counsel for the petitioner submits that if the impugned order of cancellation is set aside, the petitioner would file the returns and also pay up to date taxes.
The aforesaid submission of learned counsel for the petitioner is placed on record.
In the result, I pass the following: ORDER i. The petition is hereby allowed. NC: 2025:KHC:14315 ii. The impugned order at Annexure – B1 dated 26.11.2019 is hereby quashed. iii. The respondents are directed to reinstate / restore the GST registration of the petitioner within four weeks from the date of receipt of a copy of this order, subject to the petitioner filing GST returns and paying up to date tax together with interest and penalty within the aforesaid period of four weeks from the date of receipt of a copy of this order. iv. It is needless to state that this order is made in the peculiar / special facts and circumstances obtaining in the instant case and this order cannot be treated as a precedent nor shall have any precedential value for any other purpose, whatsoever. (S.R.KRISHNA KUMAR) JUDGE
SV List No.: 1 Sl No.: 71
Reproduced from the public record of the Karnataka High Court. Verify against the court's own copy before relying on it. Income tax judgments are on bharattax.net.