BharatTaxGST

Smt. Renuka Laxman Uppar vs. The Addl Commissioner (Appeals)

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WP/107545/2023HC KarnatakaGSTCNR KAHC02020374202305 February 2024Bench: HEMANT CHANDANGOUDAR6 pages
For Petitioner: SRI YADAWAD PRAMOD SHRINIVAS, ADVOCATEFor Respondent: SRI HANAMANTHARAY LAGALI, ADDL. GOVERNMENT ADVOCATE FOR R1 AND R2

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Cause title — parties, addresses and appearances
- 1 - NC: 2024:KHC-D:2515 WP No. 107545 of 2023 IN THE HIGH COURT OF KARNATAKA, DHARWAD BENCH DATED THIS THE 05TH DAY OF FEBRUARY, 2024 BEFORE THE HON'BLE MR JUSTICE HEMANT CHANDANGOUDAR WRIT PETITION NO.107545 OF 2023 (T-RES) BETWEEN: SMT. RENUKA LAXMAN UPPAR SRI RENUKA DARSHINI RESTAURANT 212/04, 05, CLASSIC INTERNATIONAL SCHOOL, TAPOVANA, DHARWAD-580007 (REPRESENTED BY ITS PROPRIETOR SMT. RENUKA LAXMAN UPPAR, AGE. 51 YEARS) …PETITIONER (BY SRI YADAWAD PRAMOD SHRINIVAS, ADVOCATE) AND: 1. THE ADDL. COMMISSIONER (APPEALS) BELAGAVI OFFICE OF THE COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEAL) NO.71 CLUB ROAD, BELAGAVI-590001. 2. THE SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE, DHARWAD RANGE-A, FIRST FLOOR ZEDEM TOWER OPP. C.R.BUILDING, HUBBALLI-580025. 3. THE ACCT, LOCAL GST OFFICE LGST-310, D C COMPOUND, DHARWAD-580001. …RESPONDENTS (BY SRI HANAMANTHARAY LAGALI, ADDL. GOVERNMENT ADVOCATE FOR R1 AND R2) THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA, PRAYING TO: K M SOMASHEKAR Digitally signed by K M SOMASHEKAR Date: 2024.02.21 05:57:34 +0530 - 2 - NC: 2024:KHC-D:2515 WP No. 107545 of 2023 A) ISSUE WRIT OF MANDAMUS OR ANY OTHER WRIT OR ORDER SETTING ASIDE APPEAL VIDE ORDER-IN-APPEAL NO.BGM-JJ- ADC-78-2023-24-GST ORDER DATED 05/10/2023 PASSED BY THE ADDL.COMMISSIONER (APPEALS), BELAGAVI OFFICE OF THE COMMISSIONER OF CENTRAL GST AND CENTRAL EXCISE (APPEALS), RESPONDENT NO.1 PRODUCED HEREWITH AND MARKED AT ANNEXURE-A. B) ISSUE WRIT OF MANDAMUS QUASHING ORDER DATED 12/01/2023 VIDE REFERENCE NO.ZA290123049449C IN FORM GST REG-19 PASSED BY SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE, DHARWAD RANGE-A, DHARWAD RESPONDENT NO.2 PRODUCED HEREWITH AND MARKED AT ANNEXURE-F. C) DETERMINE THE CORRECT AND PROPER OFFICE TO REVOKE CANCELLATION OF REGISTRATION BETWEEN RESPONDENT NO.2 I.E. SUPERINTENDENT OF CENTRAL TAX AND CENTRAL EXCISE DHARWAD RANGE-A, DHARWAD AND RESPONDENT NO.3 I.E. THE ACCT, LOCAL GST OFFICE, LGST-310, DHARWAD AND DIRECT THE SAID PROPER OFFICE SO DETERMINED TO REVOKE CANCELLATION OF REGISTRATION IMPUGNED THEREIN, AND ETC.,. THIS PETITION COMING ON FOR PRELIMINARY HEARING THIS DAY, THE COURT MADE THE FOLLOWING:

ORDER The petitioner proprietor concern is involved in the business of providing hostel accommodation services for training of recruits of Railway Recruitment Board, hotelier and restaurateur and was issued with registration certificate in Form No.GST REG-06 under section 10 of Karnataka Goods and Service Tax Act, 2017 read with Rule 10-(1) of Karnataka Goods and Service Tax Rules, 2017. NC: 2024:KHC-D:2515

2.

The registration certificate issued in favour of the petitioner was cancelled for not filing returns for more than six months as stated under section 29 of the GST Act. Taking exception to the same, an appeal was filed before the 1st respondent under section 107 of the GST Act. The said appeal came to be dismissed, since the same was filed after the period of limitation prescribed, and there is no provision under section 107 of the Act to condone the delay in filing the appeal. Hence, this petition.

3.

Learned counsel for petitioner submits that the impugned order cancelling the registration certificate was notified to the accountant of the petitioner, and the order having not been communicated, there was a delay in filing the appeal before the 1st respondent. He further submits that the petitioner has paid the entire arrears of tax, interest, penalty and late fees for the belated filing of the returns, and therefore, no prejudice will be caused to the State, if the order of cancellation of the registration of the certificate issued in favour of the petitioner is revoked. NC: 2024:KHC-D:2515

4.

Learned Addl. Government Advocate for the State would submit that the petitioner having not filed the returns within six months, as contemplated under section 29 of the GST Act, respondent No.2 has rightly cancelled the registration certificate. He further submits that the petitioner having not filed the appeal within the limitation prescribed, the 1st respondent has dismissed the appeal, as barred by limitation and the same does not warrant any interference.

5.

Considered the submissions made by the learned counsel for the petitioner and the learned Addl. Government Advocate for the State.

6.

Section 29 of the GST Act, 2017 deals with cancellation or suspension of registration, and clause (c) of sub-section (2) of section 29 states that the competent authority may cancel the registration of a person if he has not furnished returns for a continuous period of six months. Therefore, reading of the said provision indicates that the competent authority before cancelling the registration certificate should assign reasons for cancellation of the registration. NC: 2024:KHC-D:2515

7.

In the instant case the 2nd respondent has not assigned reasons except stating that the petitioner has not filed returns for six months and the order cancelling the registration certificate issued in favour of the petitioner is one without application of mind and adversely affects the right of the petitioner to carryon a business as guaranteed under Article 19(1)(g) of the Constitution of India. The petitioner after cancellation of the registration certificate has tendered the entire arrears of tax including interest, penalty and late fees for filing the returns belatedly. Such being the case, the cancellation of the registration certificate granted in favour of the petitioner would be arbitrary and discriminatory. Accordingly, I pass the following: ORDER i) The writ petition is allowed. ii) The impugned order dated 05.10.2023 passed by the 1st respondent in Appeal No.BGM-JJ-ADC-78-2023-24-GST, produced at Annexure-A and the order dated 12.01.2023 passed by the respondent No.2, cancelling registration of the petitioner, produced at Annexure-F are hereby quashed. NC: 2024:KHC-D:2515 iii) Respondent No.2 to restore the certificate of registration dated 08.08.2018 granted in favour of the petitioner and permit the petitioner to file returns under the provisions of the GST Act. JUDGE

MRK CT:GSM List No.: 2 Sl No.: 45

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.