Mallikarjun vs. Assistant Commissioner Of Commercial Taxes And Anr
Original PDF →Facts
The petitioner, M/s Mallikarjun PWD Contractor, a registered GST dealer, failed to file GST returns in a timely manner. A show cause notice was issued, to which the petitioner did not provide a valid response. Consequently, the GST registration was cancelled by operation of law. The petitioner appealed this cancellation to the Joint Commissioner of Commercial Taxes (Appeals), but this appeal was dismissed due to delay. Aggrieved by the dismissal of the appeal, the petitioner filed a writ petition before the High Court, seeking to quash the appellate order and restore their GST registration.
Held
The Court held that the writ petition should be allowed. The order passed by the Joint Commissioner of Commercial Taxes (Appeals) was quashed. The matter was remitted back to the assessing authority (Respondent No.1) for a fresh disposal in accordance with the law. This decision was based on the finding that an opportunity to appear before the assessing authority and seek necessary relief would meet the ends of justice, particularly because no notice was issued to the petitioner before the cancellation of their registration. The Court directed the petitioner to appear before Respondent No.1 on 15.04.2024, file their reply to the show cause notice along with the pending returns, and for Respondent No.1 to pass appropriate orders within two months thereafter. The ratio decidendi is that cancellation of GST registration without affording an opportunity to be heard, even if initiated due to non-filing of returns, violates principles of natural justice and warrants remand.
Key Issues
1. Whether the cancellation of GST registration was valid, considering the principles of natural justice, specifically concerning the issuance of notice prior to cancellation? 2. Whether the dismissal of the appeal by the Joint Commissioner of Commercial Taxes (Appeals) on grounds of delay was justified? The petitioner argued that the principles of natural justice were violated as no notice was issued before the cancellation of their GST registration. They relied on a judgment from a co-ordinate bench of the High Court in W.P.No.202882/2022. The respondents, represented by the Additional Advocate General, contended that the petitioner was negligent in not responding to the show cause notice and also in filing the appeal late. They argued that the authorities had rightly passed the orders and sought the dismissal of the writ petition.
Sections Cited
GSTREG-19
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORDER Heard Sri Mallikarjun Sahukar, learned counsel for the petitioner and learned Additional Advocate General for the respondents.
The writ petition is filed with the following prayer: “A) Issue a writ in the nature of certiorari and quash the order-in-Appeal GST.AP.88/23- 24/408 Dated 28.11.2023 passed by Respondent No.2 vide Annexure-C, in the interest of justice and equity. B) Issue a writ in the nature of mandamus or any other appropriate
Writ/order/ direction to Respondents to restore the GST Registration of the Petitioner. NC: 2024:KHC-K:2540 C) Grant such other reliefs or orders as this Hon’ble Court deems fit in the facts and circumstances of the case, in the interest of justice.
The petitioner is a registered GST dealer where GST is applicable. He failed to file the returns in time. Show cause notice was issued for which there was no valid response from the petitioner. Later on, by operation of law, the registration in Form No.GSTREG-19 is cancelled.
Being aggrieved by the same, the petitioner filed an appeal before the Joint Commissioner of Commercial Taxes (Appeal). The said appeal was also dismissed on the basis of delay.
Being aggrieved by the same, the petitioner is before this Court.
The petitioner submits that before cancellation of the registration, principles of natural justice has not been followed. Therefore, the matter be remitted to the authority for affording an opportunity for the petitioner to NC: 2024:KHC-K:2540 have his say in the matter and then pass appropriate orders in accordance with law. In respect of the same, he has placed reliance on the judgment of Co-ordinate Bench of this court in W.P.No.202882/2022 (Annexure – D).
Per contra, learned Additional Advocate General supports the order stating that there is totally negligence on the part of the writ petitioner not only in answering the show cause notice but also the appeal was not filed in time. The learned authority has rightly passed the order and sought for dismissal of the writ petition.
Having heard the learned counsel for the parties and taking note of the relevant aspects of the matter, this Court is of the considered opinion that an opportunity provided to the petitioner to appear before the assessing authority and seek for necessary relief would meet the ends of justice, as there no notice was issued before cancellation of the registration.
Hence, the following: NC: 2024:KHC-K:2540 ORDER i. The writ petition is allowed. ii. The order at Annexure - C stands quashed. iii. The matter is remitted to the assessing authority/respondent No.1 for fresh disposal in accordance with law after affording an opportunity for the petitioner. iv. It is made clear that the petitioner shall positively appear before respondent No.1 on 15.04.2024 and file his reply to the show cause notice along with returns. Thereafter, respondent No.1 authority shall consider the same and pass appropriate orders in accordance with law within a period of two months thereof. JUDGE RSP List No.: 1 Sl No.: 85
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.